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Men, materials, machines, methods and money are regarded as four wheels of the
organization for running successfully. Among the four, men are having greater importance
in any organization. Other entities remain ineffective without efficient and effective
human resources. Thus, it is logical that there should be proper manpower or human
resource planning in the organization to use the other resources effectively. Human
resources or manpower may be defined as total knowledge, skills, creative abilities,
acquired knowledge and skills represented by talents and aptitudes of the employed
persons. Thus human resources include not only human beings, but also their knowledge,
skills, attitudes, aptitudes, etc.

Manpower may be regarded as the quantitative and qualitative measurement of

labor force required in an organization and planning in relation to manpower may be
regarded as establishing objectives of the organization. In other words, manpower
planning may be expressed as a process by which the organization ensures the right
number of people and right kind of people at the right place and right time doing things for
which they are suited for the achievement of goals of the organization. It is a two-phased
process by which management can project the future manpower requirements and
developed manpower action plans to accommodate the implications of projections. Thus
we can say that manpower planning in the process of developing and determines
objectives, policies and programs that will develop, utilize and distribute manpower so as
to achieve the goals of the organization.

Human resource management helps to determine the number and type of people
that an organization needs. Job analysis and job design specify the tasks, duties and
qualifications that are expected from the prospective job holders. The next logical step is
to hire the right number of people of type to fill the jobs. Hiring involves two broad groups
of activities:

1. Recruitment
2. Selection
Recruitment is the process of finding and attracting capable applications for
employment. The process begins when we what to recruit new employees. The result is a
pool of applications from which new employees are selected.

Selection process is the next step of employment process. The company will be
adopting various methods for selecting the suitable and efficient candidates for the job.
The objective of selection decision is to choose the individual who can most successfully
perform the job from the pool of qualified in a given company to ascertain whether the
candidate specifications are matched with the job specifications and requirements or not.

As recruitment and selection process are the most important employment policies
of any organization, there is a need for the study of these procedures.
Need for the Study
As there is more importance for R&S is the present scenario. Madhucon plays a
significant role in R&S at the time of selecting the employees. Hence the present topic
Recruitment and Selection is chosen in Madhucon Sugar and Power Industries Limited.

Objectives of the Study

 To study the recruitment and selection procedure followed in MADHUCON


 To study the various sources of recruitment followed in MADHUCON SUGAR &


 To learn the process of R&S will be followed in MADHUCON SUGAR &


 To study the effectiveness of R&S process in MADHUCON SUGAR & POWER


 To find various suggestions and conclusions from the study.

Scope of the Study
The scope of the study confined to Recruitment and Selection process of MSPIL
Company. The study also covers internal sources and external sources of recruitment,
recruitment methods, and Selection procedure of MSPIL. At last it examines the overall
efficiencies of Recruitment and Selection process in MSPIL. The scope of the study is
only for a period of 45days. The data is collected from 100 respondents of MSL.

Methodology of the Study

Sources of Data
The methodology adopted for the study of recruitment and selection is by two
methods of data collection.

1. Primary Data
The primary data is the data that which is collected for the first time by a
researcher. The primary data for the study will be collected through a well defined
2. Secondary Data

The secondary data for the study was collected from organization manuals
websites and text books.

Sample of the Study

Samples of 100 employees working in different departments are taken into
consideration to conduct the study.
Limitations of the Study
 The study is totally concentrated only on the system and process of Recruitment

and Selection followed in MADHUCON SUGAR & POWER INDUSTRIES


 The study is totally confined to the company premises only.

 As time period is not more it became inconvenient to gather much information.

 Some of the data is collected from secondary sources. Where accurate data is not


 A sample of 100 employees is selected from the whole company to take opinion as

time is not sufficient.

 The data that which is to be collected from the primary sources may not be exact

information because some of the workers are illiterates or daily wage employees.

India has been known as the original home of sugar and sugarcane. Indian
mythology supports the above fact as it contains legends showing the origin of sugarcane.
India is the second largest producer of sugarcane next to Brazil. Presently, about 4 million
hectares of land is under sugarcane with an average yield of 70 tonnes per hectare.

India is the largest single producer of sugar including traditional cane sugar
sweeteners, khandsari and Gur equivalent to 26 million tonnes raw value followed by
Brazil in the second place at 18.5 million tonnes. Even in respect of white crystal sugar,
India has ranked No.1 position in 7 out of last 10 years.

Traditional sweeteners Gur & Khandsari are consumed mostly by the rural
population in India. In the early 1930’s nearly 2/3rd of sugarcane production was utilised
for production of alternate sweeteners, Gur & Khandsari. With better standard of living
and higher incomes, the sweetener demand has shifted to white sugar. Currently, about
1/3rd sugarcane production is utilised by the Gur & Khandsari sectors. Being in the small
scale sector, these two sectors are completely free from controls and taxes which are
applicable to the sugar sector.

The advent of modern sugar processing industry in India began in 1930 with grant
of tariff protection to the Indian sugar industry. The number of sugar mills increased from
30 in the year 1930 - 31 to 135 in the year 1935-36 and the production during the same
period increased from 1.20 lakh tonnes to 9.34 lakh tonnes under the dynamic leadership
of the private sector.
The era of planning for industrial development began in 1950-51 and Government
laid down targets of sugar production and consumption, licensed and installed capacity,
sugarcane production during each of the Five Year Plan periods. The targets and
achievements during various plan periods are given below.

Sugars are a major form of carbohydrates and are found probably in all green
plants. They occur in significant amounts in most fruits and vegetables. There are three
main simple sugars sucrose, fructose and glucose. Sucrose is in fact a combination of
fructose and glucose and the body quickly breaks down into these separate substances.

The Need for Energy

All energy stored in food is derived originally from the sun and it is made by green
plant life. The sun's energy acts upon the green chemical "chlorophyll" in the leaves of
plants to produce sugars and starches from the carbon-dioxide in the atmosphere and the
water from the roots by a process known as Photosynthesis. These carbohydrates (starches
and sugar) acts as a plants food and energy supply. The energy need of human body is
largely dependent on the carbohydrates that are derived from plants.

A Balanced Diet

A balanced diet can come from a variety of different foods, calculated to give the
desired levels of carbohydrates, proteins, fats, vitamins and minerals. Nutritional scientists
advocate that carbohydrates should provide at least 50% of over energy requirements.


The discovery of sugarcane, from which sugar as it is known today, is derived

dates back unknown thousands of years. It is thought to have originated in New Guinea,
and was spread along routes to Southeast Asia and India. The process known for creating
sugar, by pressing out the juice and then boiling it into crystals, was developed in India
around 500 BC.
Its cultivation was not introduced into Europe until the middle-ages, when it was
brought to Spain by Arabs. Columbus took the plant, dearly held, to the West Indies,
where it began to thrive in a most favorable climate.

It was not until the eighteenth century that sugarcane cultivation was began in the
United States, where it was planted in the southern climate of New Orleans. The very first
refinery was built in New York City around 1690; the industry was established by the
1830s. Earlier attempts to create a successful industry in the U.S. did not fare well; from
the late 1830s, when the first factory was built. Until 1872, sugar factories closed down
almost as quickly as they had opened. It was 1872 before a factory, built in California, was
finally able to successfully produce sugar in a profitable manner. At the end of that
century, more than thirty factories were in operation in the U.S.

Manufacturing Process and Technology

Sugar (sucrose) is a carbohydrate that occurs naturally in every fruit and vegetable.
It is a major product of photosynthesis, the process by which plants transform the sun's
energy into food. Sugar occurs in greatest quantities in sugarcane and sugar beets from
which it is separated for commercial use. The natural sugar stored in the cane stalk or beet
root is separated from rest of the plant material through a process known as refining.

For sugarcane, the process of refining is carried out in following steps:

Pressing of sugarcane to extract the juice.

Boiling the juice until it begins to thicken and sugar begins to crystallize.
Spinning the crystals in a centrifuge to remove the syrup, producing raw sugar.
Shipping the raw sugar to a refinery where it is washed and filtered to remove
remaining non-sugar ingredients and color.
Crystallizing, drying and packaging the refined sugar
Beet sugar processing is similar, but it is done in one continuous process without
the raw sugar stage. The sugar beets are washed, sliced and soaked in hot water to separate
the sugar -containing juice from the beet fiber. The sugar-laden juice is then purified,
filtered, concentrated and dried in a series of steps similar to cane sugar processing.

For the sugar industry, capacity utilization is conceptually different from that
applicable to industries in general. It depends on three crucial factors the actual number of
ton of sugarcane crushed in a day, the recovery rate which generally depends on the
quality of the cane and actual length of the crushing season.

Since cane is not transported to any great extent, the quality of the cane that a
factory receives depends on its location and is outside its control. The length of the
crushing season also depends upon location with the maximum being in south India.

Sugarcane in India is used to make either sugar, khandsari or gur. However, sugar
products produced worldwide are divided into four basic categories : granulated, brown,
liquid sugar and invert sugar.

Granulated: Granulated sugar is the pure crystalline sucrose. It can be classified into
seven types of sugar based on the crystal size. Most of these are used only by food
processors and professional bakers. Each crystal size provides unique functional
characteristics that make the sugar appropriate for the food processor's special need.

Sugar Industry in India

Sugar consumption rate is highest in India as shown in the statistics received from
USDA Foreign Agricultural Service. However, as per production is concerned, India has
notched up 2nd position following Brazil, the largest sugar producer in the world.

The Indian sugar industry uses sugarcane in the production of sugar and hence
maximum number of the companies is likely to be found in the sugarcane growing states
of India including Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu, Karnataka, and
Andhra Pradesh. Uttar Pradesh alone accounts for 24% of the overall sugar production in
the nation and Maharashtra's contribution can be totaled to 20%.

There are 453 sugar mills in India. Co-operative sector has 252 mills and private
sector has 134 mills. Public sector boasts of around 67 mills.
Beginning of Sugar Industry in India
Sugar is made from sugarcane, which was arguably discovered thousands of years ago
in New Guinea. From there, the route was traced to India and Southeast Asia. It was India
which began producing sugar following the process of pressing sugarcane to extract juice
and boil it to get crystals.

It was in 1950-51 the government of India made serious industrial development plans
and set the targets for production and consumption of sugar. It projected the license and
installment capacity for the sugar industry in its Five Year Plans.

Types of Sugar Industry in India

The sugar industry can be divided into two sectors including organized and
unorganized sector. Sugar factories belong to the organized sector and those who produce
traditional sweeteners fall into unorganized sector. Gur and khandsari are the traditional
forms of sweeteners.

Manufacturing Process followed in Sugar Industry in India

Several steps are usually followed to produce sugar. These steps can be mentioned
as below:

 Extracting juice by pressing sugarcane

 Boiling the juice to obtain crystals
 Creating raw sugar by spinning crystals in extractors
 Taking raw sugar to a refinery for the process of filtering and washing to discard
remaining non-sugar elements and hue
 Crystallizing and drying sugar
 Packaging the ready sugar

Machinery Suppliers for Sugar Industry in India

Some of the suppliers that offer cutting-edge machines to the companies involved
in sugar industry of India are:

 Sakthi Sugars Ltd

 Sri Sujay Engineering Products
 Sri Vijayalakshmi Industries
 Murthy Industries
 Parveen Perforaters & Allied Industries
 Aeromen Engg Co
 Kamla Foundry & Workshop
 Tinytech Plants
 Baba Vishwakarma Engineering Co. (P) Limited

About Andhra Pradesh Sugar Industry

Andhra Pradesh (AP) abounds in maximum number of private sector sugar
companies in India along with Tamil Nadu and Karnataka. In the year 1933-34, vacuum
process was adopted for sugar manufacturing in the state. Previously, the state government
was planning to support Cooperative sector as against other sectors. However, with
passing time, a considerable change in the policy was noticed. Letters of Intent (L.O.I.)
were given to the deserving entrepreneurs including 20 LOIs to the private sector

This gradually resulted in major benefits for the state government as well as for
India as a whole. Today, Andhra Pradesh sugar industry ranks 3rd in terms of recovery
and 5th in terms of cane crushing. As per production capacity is concerned, Andhra
Pradesh stands at the position 5 in India.

The agricultural laborers who do sugarcane harvesting and cultivation are

employed in the sugar industry in Andhra Pradesh. Today, the unprecedented growth of
this industry in the state has led to the consolidation of village resources and has facilitated
communication, employment and transport system here.

Types of Sugar Industry in Andhra Pradesh

Andhra Pradesh sugar industry can be classified into two parts such as organized
sector including sugar mills and unorganized sector including manufacturers of gur
(jaggery) and khandsari. The unorganized sector is often referred to as the rural industry.
The rural industry plays major role in the level of production.

Directorate of Sugar and Commissionerate of Cane in Andhra Pradesh

Belonging to Industries and Commerce Department, the Directorate of Sugar and
Commissionerate of Cane has been vested with the power to guide and deal with the sugar
factories in Andhra Pradesh. It is the responsibility of the department to encourage
sugarcane farmers and to help this developing industry contribute effectively towards
Gross State Domestic Product (GSDP). The department also takes care of the
technological advancements of the industry.

Some of the major players in the Andhra Pradesh sugar industry are listed below:

 Bhagwathi Khandasari Sugar Mills

 Bhagwati Khandsari Sugar Mills
 Bhagwati Khandasari Sugar Mills
 N C S Sugars Ltd
 The Kirlampudi Sugar Mills Ltd
 Tirumala Khandasari Udyog
 Sri Sarvaraya Sugars Ltd
 The KCP Sugar & Industries Corpn. Ltd
 KBD Sugars & Distelleries Ltd
 Deccan Sugars Ltd
List of Sugar factories in AP

Factory Name Village Nearest City

Empee Sugars & Chemicals Ltd. NAYUDUPET
Ganpati Sugar Industries Ltd., Fasalwadi / Kulbugoor Sangareddy
Gayatri Sugars Limited Kamareddy
GMR Industries Limited Sankili, Regidi
GSR Sugars Limited MAAGI MAAGI
K.C.P. Sugar & Industries
Corporation Ltd
K.C.P. Sugar & Industries
Corporation Ltd
Kakatiya Cement Sugar & Industries
KBD Sugars & Distilleries Ltd Mudipapanapalli
517 247
Madhucon Sugars Limited RAJESWARAPURAM Khammam
Navabharat Ventures Ltd SAMALKOT Visakhapatnam
NCS Sugars Limited Latchayyapeta
Nizam Deccan Sugars Limited MOMBAJIPALLY Deccan
Sarita Sugars Limited Prabhagiripatnam
Sree Rayalseema Sugar & Energy Ltd Ponnapuram Nandyal
Sri Sarvaraya Sugars Ltd CHELLURU Chelluru
Sri Venkateswara Co-op. Sugar
The Andhra Sugars Ltd- Unit -II Taduvai
The Chittoor Co-Operative Sugars
The Chodavaram Co-op Sugars Ltd GOVADA Chodavaram
The Cuddapah Co-op Sugars Ltd Doulathapuram Cuddapah
The Kovur Co-op Sugar Factory Ltd POTHIREDDIPURAM Kovur
ON (1995-
(1) (2) (3) (4) (5) (6) (12)
ANDHRA 0.19 4.8 13.73 5 72263 95
ASSAM 0.03 0.8 1.29 0.5 43000 -
BIHAR 0.11 2.8 5.04 1.8 45818 22.4
GUJARAT 0.17 4.3 11.84 4.3 69647 100
HARYANA 0.14 3.5 7.55 2.7 53929 97.2
KARNATAK 0.31 7.8 28.33 10.3 91387 100
MADHYA 0.06 1.5 2.11 0.8 35167 97.3
MAHARASH 0.46 11.6 38.18 13.8 83000 100
ORISSA 0.02 0.5 1.14 0.4 57000 100
PUNJAB 0.13 3.3 7.33 2.7 56385 94.9
RAJASTHAN 0.02 0.5 1.16 0.4 58000 96.4
TAMIL 0.32 8.1 35.68 12.9 111500 100
UTTAR 1.96 49.4 119.97 43.4 61209 51.4
WEST 0.03 0.8 1.83 0.7 61000 70.9
OTHERS 0.02 0.5 1.07 0.4 - -
ALL-INDIA 3.97 100 276.25 100 69647 88.5

The Palair cooperative sugars Ltd, Was registered on 12th march, 1976 for
establishment of vacuum pan sugar factory of 1250 tones, crushing capacity per day at
Rajeswarapuram in Palair lake layout area in Thirumalaypalem taluk of Khammam
District. The factory is located in economically backward area what soil is suitable for on
cane with easy transport; the area of operation of the factory consists of 108 villages
situated with in radius of 35 Kms. From the factory. It has recently localized so far a total
area of 10932 acres for cultivation of cane around the factory. The area has been
distributed into three blacks in ordered to irrigation of soil. The total cost of the project is
about Rs. 10-00 crosses. The crushing capacity of the project is 1.62,500 Metric tones in a
annumand 1, 38, 125 Quintals sugar production in a year.
Product : Sugar
Bi-products : Bagasse
Filter cake
 Bagasse is used as firewood to run Boilers
 Molasses is used in the manufacturing of Distillers like Alcohol and spirits,
Ethanol etc.,
 Filter cake is used as manure for the agriculture.

Objectives of the Company

 Manufacturing of white crystal sugar
 To promote the agriculturists in that particular area
 To utilize the harvest of sugar cane in that area
 Improving the cultivation methods through giving better support to the farmers.
 Issuing loans to farmers for productive and other similar purposes
 To encourage self help thrift and co-operations among members
 To undertake such other activities as are incidental and conducive to the
development of sugar cane, sugar and allied industries.
Progress in the post-dependence period before 1932, there were only 32 factories
producing about 1.6 lack tonns of sugar. India had to import annually 6 lakhs tonns of
sugar. The industry was granted tariff protection in 1932. As a result, production rose to
10 lakhs tonns by 1937 and the number of operating factories to 137.

During the 1950's production of sugar was a little more than one million tonns the
government provided incentives for higher production and the output progressively
increased to nearly 4 million tonns in 1970-71, about 12 million tonns in 1990-91 and 16
million tonns in 1995-96. [But declined to 12.7 million tonns during 1996-97]

Because of frequent controls decontrols, and re-controls by the government and
artificial regulation of market supplies by the industry and because of many
administrative blunders, sugar prices rose to record height and shot up to between
8/- o 11/- per kg in different parts of the country in the eighties (80's), consequently, the
govt, re-introduced the dual price mechanism with partial control under this system the
govt, fixed ratio of pay and free sale sugar quota. The ratio was 45:55. It was received to
28:72. The increase in the free sale sugar quota to 7.2% was to give boost to sugar
production by sugar mills. The levy sugar is sold to consumers thought fair price shops at
lower price.

The free sale sugar quota is sold by sugar factories at higher prices in the open
market. The production and supply of sugar has been quite comfortable during the last
two decades. Sugar output during 1990-91 was nearly 12 million tones and registered a
record high 15.3 million tonns during 1996-97 while production of sugar was steadily
rising, consumption too-had been rising but at a lower rate. As a result the stocks at the
lose of the sugar year was increasing 2.2 million tonns in the beginning of 1990-91 and
7.1 million tonns in 1996-97. Despite huge supplies stocks the country was unable to
export much because the price of Indian sugar was much higher than international price.

Sugar scam in 93-94 during 1991-93 and 1993-94 there was and unexpected
problem for the Indian sugar industry. Because have climatic and the unfavorable
conditions, average under sugarcane came down considerably specially in Maharastra
and production of sugar declined to 10.6 and 9.8 million on tonns respectively.
At one time the govt was confident that the supply position and price of sugar had
sky-rocketed (Rs. 18 to Rs 20 per kg.) at the end of 1993-94 and in the first quarter of
1994-95. Thus forcing the govt, to import large quantity of sugar just the mere
information that India was entering the international price of sugar to the great
disadvantage of India. This was referred to as the sugar muddle or the sugar scam.

The sugar industry was deli censed in August in 1998. However, this
announcement was not received with much enthusiasm by the sugar units. This is partly
due to the fact that delicenscement the with withdrawal of incentives that free licensing
policy had provided and partly because even in the post deli censing scenario, a number
of controls remain. The post deli censing controls one as follows.
1. Policy of sugarcane fixed by the govt.
2. Most stated enforce there own sugarcane price (SAP)
3. The SAP has to be paid to farmers within 15 days of purchase.
4. 30% of sugar production has to be farmers within 15 days purchase.
5. 30% of sugar production has to be sold to govt. at officially -determined below cost
6. The sale of the remaining 70% is controlled through a system of monthly quotas fixed
The centers.
8. Sugar miles obliged to sell at least 45% of the quota every for night.
9. 30% levy sugar also subject to monthly release orders.
10. Price and movement of molasses controlled by state government.
11. Export of sugar subject to the approval of the centra! government.Export of molasses
has to be cleared by state govt.
 Problems of mounting losses.
 Fixation of high sugarcane prices by the state govt.
 The question of minimum economic size.
 Old machinery.
 Low sugar recovery.
 Failure to follow a consistent policy.
 Completion from cheaper import.
The govt. Of India issues periodically guidelines for licensing new sugar factories
and for expansion of existing sugar factories. The guidelines (announced in July 1990)
where designed to give a boost to the sugar industry.
1. Licenses for new factories would be issued subject to the provision that there is no
sugar factory with in a radius of 15 km.
2. The new sugar factories would be licensed for a minimum crushing capacity of
2500 tons per day.
3. New licensed would be issued on the condition that cane prices would be payable
on the basis of sucrose content of the sugarcane.
4. Preference in licensing is to given to proposals from the co-operative and the
public sector rather than from the private sector.
5. Licenses are to be given liberally for the manufacture of the industrial alcohol
through the conversion of molasses; this is to boost production and export of
industrial alcohol.


The sugar development fund was setup in 1982. Under the sugar less act and is
funded by transfer of proceeds of sugar was imposed at the rate of Rs. 14 per quintal on
sugar produced by all sugar factories. The fund is utilized for advancing loans on short
terms for the revalidation and modernization of sugar industry and for development of
sugar cane in the sugar factory area. The sugar development fund makes grants for
undertaking research projects for developments of sugar industry.

The fund is also defray expenditure for the purpose of building have and
maintenance of buffer stocks of sugar with a view to stabilizing its price. The total
allocation credited to the fund til! 1996 Amount to Rs 1,6607- crores. The fund has so far
sanctioned loans amounting to Rs. 960/- crores for sugarcane development and for
modernization/rehabilitation of sugar factories.

Government sugar industry to study the development and growth of sugar industry
in India vis-a-vis other sugar producing countries and suggest modifications amendments
or repeal of any existing laws and controls in order to increase production and efficiency,
the govt, of India had constituted a high-powered committee under the chairmanship of
"B.B.Mahajan". The "Mahajan committee" submitted its report in April 1998.

Major recommendations of the committee are:

1. Complete control of sugar in order to provide level paying field to the domestic
industry vis-a-vis imported sugar,
2. Discontinuation of supply of sugar through the public distribution system (P.D.S) for
plugging the leakages on account of P.D.S. sugar finding way to open market.
3. Setting of a sugarcane pricing board to determine every September the advance price
(S.M.P) for the ensuring crushing season.
4. Minimum distance of 15 km. Between an existing sugar mill and a new sugar mill
for which license is to be issued in order to ensure viability of both the mills.
5. Continue of import of sugar under open general license (O.G.L) in order to product
the consumers against any unusual rise in prices.

The sugar industry is essential an Agro Industry and therefore it should be centrally
located within the vast area of cane cultivations otherwise it wilt increase the cost of
transport. It should be established at a place where Agronomic conditions favored to the
development of sugarcane plantation and where climatic conditions rainfall, land fertility
and irrigation facilities as such as to ensure burnt supply of sugar cane with high yield. As
per the norms of the govt, the industry should have basic infrastructure facilities such as:
The transport system by road any by vial should be satisfactory so that there is
ability to supply abundant quantity of sugar cane and other items such as machinery,
sulpher, line, coal and heavy chemicals used in manufacturing process.
The factory should preferable by near commercial enter for large-scale
consumption as well as export.
Water availability:
Portable water good for boilers as well as dirking should be available in large form
arrives clam and or from sub-soil.
Surroundings should be healthy for employees and worker men's the location
should not be near marshy lands or in slum area.
1. Market for the disposal of lye products.
2. Disposal of effluents offer treatment in early way
3. Labor availability.
4. Lands should be free from mills dates is good for health and Storing.

Layout of factory:
1. Factory area should be sufficient land for the factory colony officer.
2. Boilers may be in the straight line with mills.
3. Energy station must be jute clear.
4. Sufficient space must be near to left in the machinery layout for future
5. Juice weighting must be near to mills house.
6. Cane yard must be very big.
• Every employ has been paid Rs.2 & matching contribution of Rs.5/- from the
management. Both contributions shall be sent to the labor department for every
year i.e. 31" Dec. subsequently the labor department has been sanction the welfare
scholarship to the employee's children.
• If any employee is suffering chronic deceives, the labor department to be sanction
more than 10.00/- to the employ on production of medical certificates from the
• The management is providing drinking water to employ in various places of the
• Suppurate toilets to employee
• The management provides safety belts to the employ who are working more then 12
• The management provided crlouses to the electrical staff to avoid the short circuits.
• The management provided some important slogans in factory premises to avoid the
dangerous accidents.
• The management provided content facility by giving subsidy rates.
• The management provided separate rest rooms to the employ & workers for the
purpose of dining.
• The management provided primary school up to 5lh class to the employees children
in the colony.
• The management & employ conduct the sports and also cultural activities on 15th
Aug. every year to improve co-ordination & co-operation among the employees.


 Providing quarters (as per their category)
 Shoes for the purpose of safety measures
 Two pair of uniform for every year
 If any employees met with the accident the management immediately give the first
aid and take the patient to Khammam Govt. Head Quarters hospitals & provide 2
persons to assist them for during the hospitalization.
 As per the orders of the labor department i.e. assists commissioner of labor & deputy
commissioner & deputy commissioner we have to pay the compensation to the
person who met with the accident.
 The factory management has been sanctioned towards the future expenses an amount
of 500/- to the person who died artificially or accidentally.
 Their cases have been recommended to the labor department for the compensation as
per the factory act.
 The management every year has been sanction productivity linked incentive (bonus)
to employee for every year depending upon the percentage of the recovery.
The labor department has been introduced the filarial fund to the employee &
worker of the factory industry
The final step in sugar recovery is allowed to take place by cooling is crystallizes.
Separate the molasses from the surface of crystals for removal much as possible leaving
only a very thin form of lose molasses adhering
The sugar leaving the centrifugal is hot at 60 -70 deg. C and contains 0.5 to 1 .5-%
moisture, and as such it, conveyors are of their design
 screw or scroll conveyor
 gross hopper conveyor
 belt or salt conveyor
The graders is used for obtaining the sugar from consists of mixture of netegogenuous
crystals and need to be well seined and graded before it is marketed after grading , 3 sized
of sugar will come out big size , small size, medium size
The final molasses is one of bi-products, which separates from the sugar in the
final stage is used in manufacturing of alcohol an spirits etc.,

The under slimed principle involved in the multiple effect evaporation is that direct
steam is used only once and the vapor produced by its boiling juice is repeatedly used for
boiling the juice in the succeeding vessels. The hot clarified juice C 15 o brick heating
tubes and will overflow apart into the canal for the outlet called unsulphured syrup
(having bricks X 60 degrees) the percentage of evaporation is 60-15/60X100=75%

The evaporation or concentration of clarified juice is the separation of water by

evaporation process at temperature between 60 deg. And 130 deg., normally conducted as
multiple evaporation in 4 to 5 steps, the condensed water contains small of these
imparities in the condensed water becomes more important as the factory is use high
pressure water becomes more important as the factory is use high pressure in the steam
generation plants.

The condensation contains oxygen, co2, so2 ammonia, organic acids, adlcyas and
methyl and other alcohol. The vapor line juice heater installed between the last vessel of
the evaporator and condenser esan heat the cold juice to about 10 c rise this method of
vapor heating gives the highest saving because it recones in the direct way heal which
would other wise be lost in waste water it saves more cooling water, steam and fuel then
mixed juice is heated to the same temperature by vapor bled from the preceding russels.

The loss of juice condenses, vapor is called entertainment, the entertainment of

particles from the evaporator can give heavy loss of sugar. After evaporation the
subsequent process is changing the thick juice into crystal form through the vacuum pans.

The juice canes out from first mills called primary juice similarly the juice comes
out from last mill is called miced juice the juice will be analyzed at the final baggage
which is one of bi product is analyzed for moisture percent & sugar percent and sugar cane
should not exceed 1.1% as fees the standard from

The juice extracted by the mills is passed through a metal striver to remove
suspended impurities the operation is carried out near the mill to that the strainer
substance consisting of quest-quest readily returned to the mill intermediate carrier for
subsequent extraction of the juice.
Cane + water = juice + baggage.
Baggage is used as fuel to run the boilers juice is normally weighted as mixes juice
it can be takes to obtain find the correct specific gravity followments can be used for this
application. The juice comes from raw juice tanks after weightment will go to raw juice
heaters there it will be heated up to 60-70c and then it goes to juice sulfuric and there it
will be mixed with milk of lime and so, gas and after wards it is again heated up to 100c at
juice heaters in order to obtain are paid setting and separations of the precipitants out of
the two types heaters.
The sulfur furnace is made of cost iron and the body of the furnace is cane a water
focker for cooling the large pipe through which the funnel escape to the gas main called
the sublimation is also having water jacket the object of this sublimetor is also to catch a
large part of the sublimed sulfur. After, the juice is sucked up by vacuum and filtration are
mixed with the mixed juice the reside comes from that called "filter cake" and it is sent
out as one bi-product and which is used as fertilizer.

Required Machinery Supplied by

These machineries are bought from the companies, which are given below.
 M/s Buckar Wolt India ltd., (Pune)
 The Nijam Sugar Factory, sugar machinery division, Nagarjuna Sagar.
 BHELLtd.,Hyd
 Bellies India Ltd., Calcutta.
 ISCEC John Thomson water tube boiler.

In the beginning of production process, sugar canes are loaded into a container,
cane carrier carries them into cane kicker. It helps to maintain a uniform level of sugar
canes. Cane cutters cut the whole cane into small pieces and even cut the layer of the cut
Those small pieces are send into crusher. By crushing that small pieces of sugar
cane more juice
Will be extract. The mill entrant the more juice which goes to process of
manufacturing of sugar. There will be 4 mills, in each mill there are three volues. The
prepared cane to 1SI mill and there it will be crushed. The product canes from discharge
rollers of 1st mill is called primary juice. Life wise the primary baggage passes through
remaining 3 mills.either hot water or cold water or both are used as macuration water,
which is used at the 4lh mill for extraction of more juice.
 Vacuum pans
 Condensation plant
 Water cooling system
 Cooling, curing and drying
 Sugar dryers
 Gardens
 Molasses weighment
 Steam power plant (boilers)
 Chimney
 Power plant
 Miscellaneous items
• Sugar muter
• Sugar elevators
• Diesel generation
• Final molasses storage tank
• Furnace of oil storage tank
• Baggage elevator


• Sugar cane and
• Chemical
• Burnt lime
• Sulfur (so 2)
• Sodium exhamata phosphate
• Viscosity reducer
• Anti sealant
• Descalant
• Hydrogen peroxide (H2O2)
• Cane carrier
• Cane kicker
• Cane levelers
• Cane cutter
• Crusher
• Mills
• Juice wiggling scale
• Juice Heaters
• Sulfur burner
• Filter presser
• Carbonation plant
• Evaporation plant
• Syrup treatment plant
 Sugar occurs in greatest quantities in sugarcane and sugar beet from which it in
separated for commercial use. The process of refining is carried out in the
following steps. (2)
 Processing of sugarcane to extract the juice.
 Boiling the juice until it begins to thicken and the sugar begins to crystallize.
 Spinning the crystals in a centrifuge to remove the syrup, producing taw sugar.
 Shipping the raw sugar to a refinery where it is washed and filtered to remove.
 Remaining non-sugar ingredients and color.
 Crystallizing drying and packaging the refined sugar.

 Government:
• 1. No. Of shares: 88.568
• 2. Value of each share: Rs. 500.00
• 3. Total share value: Rs.442.84 lakhs
 Other Members:
• 1. No. Of shares: 14.190
• 2. Value of each share: Rs. 500.00
• 3. Total share value: Rs.70.95 lakhs
The factory had commenced its trial crush during 1983-84 and commercial crush
during 1984 - 85 season.


There are 3 computers in the office for the purpose of some official works and
office information like giving permits, salaries to employees and workers etc, but the
management did not computerize the company only one person is there to operate the
computers at the office timings 9 to 6 clock.


During the year 2001-02 MADHUCON sugars limited was incorporated to

purchase and takeover the sick sugar mil namely the plair comparative sugars limited.
Established in1982. At the time of taking over, the company had net profit in the first year
of operation itself.

Later the company’s name was changed as “MADHUCON SUGAR

INDUSTRIES LIMITED”. This company is one of the companies in Group Company of
MADHUCON projects limited which is having diversified activities of construction of
infrastructures projects like roads, buildings, flyovers, granites, sugar and allied products.

MADHUCON GROUP is working on projects in various core sectors of nation as

importance like highways, irrigation, producing the construction materials, power houses,
all of which, no need to are so essential now for the all round infrastructures development
of the nation.
Madhucon sugar and power industries limited was registered on 5th November
2002, which was purchased under private scheme with capacity of 1250 tones per day.
The factory is located at Rajeswarapuram village in khammam district. The factory and
service area consists of 207 villages situated in radius of 35 kms. And the company has
5.577 registered cane formers.
Madhucon sugar and power industries is one of the group companies of
infrastructure projects like roads, bridges, canals buildings, flyover, granites, sugar and
allied products.
The group turnover is around 600 cores an d earning reasonable profits. The
present market price of MADHOCON PROJECTS LIMITED share of rupees 200 each is
coating around rupees 300.

History :
Madhucon Projects Limited, Hyderabad, the flagship company of Madhucon
Group was established in 1983. It was converted into a Private Limited Company in 1990
and became a Public Limited listed Company in 1995. We acquired a truly wide and solid
base of experience in major areas of industrial and infrastructure construction- Highways,
Irrigation, Property Development etc.


Executive director SRI NAMA KRISHNAIAH

The company also purpose to setup now project for the production of alcohol/ethanol
from molasses and cereal gains with installed capacity of 65KLPD.
During the year under review, our company crushed 147315.741 MTS (Previous
period 259114.156 MTS) of sugarcane and produced 1,09,450 Qts (Previous period
156737 Qtls) sugar, 7170.670 MTs (Previous Period 11999.67 M.Ts) Molasses and
achieved the turnover of Rs. 1921.18 Lakhs (Previous period 3243.08 Laksh). After
providing depreciation of Rs. 129.97 Lakhs (Previous period Rs. 146.97 Lakhs) net loss is
Rs. 77.44 lakhs (Previous year profit of Rs. 4.68 Lakhs). The company could able to crush
only 1,47,315.741 MT, though the cane was available to the extant of 2,70,000 MT for the
season. The company sent the balance cane to other nearby sugar Mils for crushing. This
was happened because of Mechanical problems of the existing sugar mil. The Turnover of
the company has come down because of not selling of sugar and Molasses stocks because
of adverse market conditions. Your directors are hopeful for the improved situation from
the ensuing Financial Year.
Directors are happy to inform that the new sugar Mill with the crushing capacity
of 3500 M. Ts per day has been completed in all respects and commissioned successfully
during the year 2007-08.
Directors would like to inform that the cane availability for the season 2008-09
will be around 70,000 M. Ts. This is happening because of shifting of farmers from sugar
cane to paddy crop because of higher realizations. However your Directors are initiated
various developmental works by way of extending financial assistance and subsidies in the
form of cash and cane seed at free of cost to the cultivators and also providing financial
assistance for digging wells, providing PVC pipes, Fertilizers, Weedicides, cane seeds etc
to improvise the cane cultivation area. Your Directors are hopeful of improved cane
availability to the extent of 5, 00,000 M, Ts per annum during the next 3 to 4 years.
Directors are also happy to inform that the 20 MW Co-Gen plant will likely to be
commissioned by September, 2008 and the company has entered into power purchase
Agreement with A.P Transco for a short period of 2 Months. After the operations of the
power plant are stabilized and achieved the targeted rate of production, the company is
proposing to sell power on long term basis with PTS India Limited, because of higher
price realizations. Once the power plant is commissioned with the rated capacity your
Directors are confident of achieving better financial performance during the year 2008-09.
Though the financial tie-up has been completed for 65 KLPD Distillery plant, the
implementation work for the plant has not yet been started. The company has obtained
certificate for Certificate for Establishment for Distillery plant form Government of
Andhra Pradesh and likely to get certificate For Manufacturing of Distillery from
prohibition and Excise department, Government of Andhra Pradesh. The project
implementation work is likely to stat from November 2008 and expected its commercial
operations by July 2009.

The relations with the employees continue to be cordial. Our Directors express
their appreciation for the dedicated services of the Employees and officers of the company
for fulfilling the objectives and attaining the goals of the company.
None of the employees of the company was in receipt of remuneration, which in
the aggregate exceeded the limits specified under sub-section (2A) of section 217 of the
companies Act, 1956.
Management team:

 Founder : Sri Nama Nageswara Rao

 Sri N. Krishnaiah, Whole Time Director
 Sri N. Seethaiah, Director
 Sri S. Vaikuntanathan, Director


 Madhucon Infra Ltd. , a subsidiary of Madhucon Projects Ltd.

 N. Seetaiah & Associates

 To become a leading power generation company delivering sustainable and quality
power to the nation.


 To establish higher capacity power plants of excellence, utilizing the state-of-the-

art technology,
process and efficient project management methods.
 Consistently deliver quality power to customers and become a partner of choice.
 Cultivate a culture of sustainability and growth in all operations of the
 Sustain professional competence at all levels through continuous training.
 Commitment to preserve environment and caring for the community.

To facilitate concentrated working and fast expansion, Madhucon has set up 7
Operating Divisions.
 BOT Projects
 Highways & Airports
 Irrigation
 Hydel Power
 Property Development
 Water Resources
 Overseas Projects

Joint ventures & consortiums partners

 Sinohydro Corporation, Beijing, China (a US$2 Billion company) specializing in

Water Resources Projects (Madhucon-Sinohydro JV)
 Binapuri Sdn Bhd, Malaysia, experts in Highways and Property Development
(Madhucon-Binapuri JV)
 Kanchanjunga Constructions, Nepal, a leading Construction Company
(Madhucon-Kanchanjunga JV)

Special strengths:
We are well equipped for infrastructure construction, particularly in the areas of
Expressways and Toll Roads; we have built hundreds of kilometers of Roads, including
National and State Highways and Expressways. Equally noteworthy are our projects in the
irrigation, property development and railway sectors.
Future outlook:
Madhucon Projects Limited is one of the top players in India in the construction
engineering sector. Madhucon desires to participate in a big way in the Property
Development sector as well. With the increasing impetus being given by the Government
of India in its yearly budget for infrastructure development, Madhucon aspires to bag
several prestigious projects.

Madhucon is also studying the overseas markets and keenly watching the
developments with a view to make an entry into the world markets at an appropriate time.

Group of Companies
 Madhucon Group

 Madhucon Projects Limited

 Madhucon Infra Limited

 Madhucon Granites

 Madhucon Sugar & Power Industries Limited

 Simhapuri Energy Limited

 PT Madhucon Indonesia

 PT Madhucon Sriwijaya Power


Human resource management means employing people, developing their

resources, utilizing, maintaining and compensating their services in force with the job and
organizational requirements with a view to contribute to the goals of the organization,
individual and the society.

Personnel management may be defined as the field of management which has to do

with Planning, organizing, directing and controlling the functions of procuring,
developing, maintaining and utilizing a labor force, such that the
a) Objectives for which the company is established are attained economically and
b) Objectives of all levels of personnel are served to the highest possible degree.
c) Objectives of society are duly considered and served
“Human resource management can be defined as managing (planning, organizing,
directing and controlling) the functions of employing, developing and compensating
human resources resulting in the creation and development of human relations with a view
to contribute proportionately to the organizational, individual and social goals”.

Managerial Functions Operative Functions

Planning Employment

Organizing Human Resources



Human Relations

Industrial Relations

Recent Trends in HRM

The functions of HRM can be broadly classified into two categories:
1) Managerial Functions
2) 2) Operative Functions

Managerial functions of personnel management involve planning, organizing,
directing and controlling. All these functions influence the operative functions.
i) PLANNING: If is a pre-determined course of action, planning pertains to formulating
strategies of personnel programmes and changes in advance that will contribute to the
organizational goals. In other words if involves planning of human resources,
requirements, recruitment, selection, training etc.

ii) ORGANIZING: An organization is a means to an end. It is essential to carry out the

determined course of action. In other words of J.C. Massie, an organization is a “Structure
and a process by which a co-operative group of human beings allocates its task among its
members identifies relationships and integrates its activities towards a common objective”.
Complex relationships exist between the specialized departments and the general
departments as many top managers are seeking the advice of the personnel manager.

iii) DIRECTING: The next logical function after completing planning and organizing is
the execution of the plan. The basic function of personnel management at any level is
motivating, commanding, leading and activating people. The willing and effective co-
operation of employees for the attainment of organizational goal is possible through
proper direction.

iv) CONTROLLING: After planning, organizing and directing various activities of

personnel management, the performance is to be verified in order to know that the
personnel functions are performed in conformity with the plans and directions of an
organization, controlling also involves checking, verifying and comparing of actual with
the plans, identification of deviations if any and correcting of identified deviations.
The Operative functions of human resource management are related to specific
activities of personnel management employment, development, compensation and
relations. All these functions are interacted with managerial functions.

i) EMPLOYMENT: It is the first operative function of human resource management

(HRM). Employment is concerned with securing and employing the people possessing the
required kind and level of human resources necessary to achieve the organizational
objectives. If covers functions such as job analysis, human resource planning, recruitment,
selection, placement, induction and internal mobility.

ii) HUMAN RESOURCE DEVELOPMENT: If is the process of improving moulding

and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment
etc., based on present and future job and organizational requirements. The functions
include are performance appraisal, training, management DEVELOPMENT, career
planning and development, internal mobility, transfer, promotion, demotion, change and
organization development.

iii) COMPENSATIONS: It is the process of providing adequate, equitable and fair

remuneration to the employees. If includes job evaluation, wage and salary administration,
incentives, bonus, fringe benefits, social security measures etc.

iv) HUMAN RELATIONS: Practicing various human resources policies and

programmes like employment, development and compensation and interaction among
employees create a sense of relationship between the individual worker and management,
among workers and trade unions and the management.

Human relations in an area of management in integrating people into work

situations in a way that motivates them to work together productively, co-operatively and
with economic, psychological and social satisfaction.

v) INDUSTRIAL RELATIONS: Industrial relations refer to the study of relations

among employees, employer, government and trade unions. Industrial relations include.
 Indian labor market
 Trade Unionism
 Collective bargaining
 Industrial conflicts
 Workers participation in management
 Quality circle
vi) Recent Trends in HRM: Human resource management has advancing at a fast
rate.The recent trends in HRM include:
 Quality of work life
 Total quality in human resources
 HR accounting audit and research
 Recent Techniques of HRM


The scope of human resource management in the modern days is vast. Infact, the
scope of HRM was limited to employment and maintenance of and payment of wage and
salary. The scope gradually enlarged to providing welfare facilities, motivation,
performance appraisal, human resource management, and maintenance of human relations,
strategic human resource and the like. The scope has been continuously enlarging.
The Scope of human resources management includes:
 Objectives of HRM
 Organization of HRM
 Strategic HRM
 Employment
 Development
 Wage and salary administration
 Maintenance
 Motivation
 Industrial Relations
 Participative management
 Recent development in HRM




 Job design and analysis

 Human Resources Planning
 Recruitment and Selection


 Performance appraisal
 Training and development
 Career planning and development
 Promotion, transfer and demotion
 Absenteeism and labor forever
 Management of change, development and culture


 Job Evaluation
 Wage and Salary administration
 Social Security and welfare


 Motivation and job satisfaction

 Morale
 Communication
 Leadership
 Work environment, Industrial accidents, safety and health

 Indian labour market

 Industrial relations
 Trade Unionism
 Collective Bargaining
 Industrial conflicts
 Workers participation in management and quality circle


 Quality of work life and empowerment

 Total quality HRM
 HR accounting, audit and research
 Recent techniques in HRM

Recruitment is defined as, “a process to discover the sources of man power 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 work
Recruitment may be defined as “the process of searching for prospective
employees and stimulating them to apply for jobs in the organization”.

The objectives of recruitment are
i) To attract people with multi-dimensional skills and experiences that suits the
present and future organizational strategies.
ii) To induct outsides with a new perspective to lead the company.
iii) To infuse fresh blood at all levels of the organization.
iv) To develop an organizational culture that attracts competent people to the
v) To search or head hunt/head pouch people whose skills fit the company’s
values and for positions that does not exist yet..
vi) To devise methodologies for assessing psychological traits.
vii) To seek out non-conventional development grounds of talent.
viii) To search for talent globally and not just with the company.
ix) To design entry pay that competes on quality but not on quantum.


Both internal and external factors affect recruitment. The external factors include
supply of and demand for human sources, employment opportunities and or
unemployment rate, labor market conditions, political, legal requirement and government
policies, social factors, information systems etc.,

The internal factors include the company’s pay package including salary, fringe
benefits and incentive, quality of work life, organizational culture, career planning and
growth opportunities, size of the company, company’s product / services, geographical
speared of the company’s operations viz., local, national (or) global, company’s growth
rate, role of trade and cost of recruitment presents the factors affecting the recruitment.


According to famularo, personnel recruitment process involves five elements, a
recruitment organization, a forecast of manpower, the development of sources of
recruitment and different techniques used for utilizing these sources and a method of
assessing the recruitment program.

Recruitment policy of any organization is derived from the personnel policy of the
same organization. In other words the former is a part of the latter. However, recruitment
policy by itself should take into consideration the government’s reservation policy, policy
regarding sons of soil etc., Personnel policies of other organization regarding merit,
internal sources, social responsibility in absorbing minority sections, women etc.,
Recruitment policy should commit itself to the organizations personnel policy like
enriching the organizations human resources or serving the community by absorbing the
weaker sections and disadvantaged people of the society, motivating the employees
through internal promotions, improving the employee loyalty to the organization by
absorbing the retrenched or laid-off employees or casual / temporary employees (or)
dependents of present / former employees etc.
The following factors should be taken into consideration formulating recruitment
policy, they are:
a) Government policies;
b) Personnel policies of other competing organizations;
c) Organizations personnel policies;
d) Recruitment sources;
e) Recruitment needs;
f) Recruitment cost;
g) Selection criteria and preference etc;

There is no general procedure for hiring new personnel which is applicable to all
business enterprises. Each enterprise has its “tailor-made” procedure which brings if the
desired quantity and quality of manpower at the minimum possible cost. The most
commonly adopted practice is to centralize the recruitment and selection function in a
single office. All employment activity should be centralized if the policies of the
management are to be implemented consistently and efficiently only when personnel
requisition goes through one central source and all employment records are kept up-to-
date is there a possibility of maximum efficiency and success in hiring.
The advantages of centralization of recruitment and selection are:
a) It reduces the administrative cost associated with selection by consolidating all
activity in a single office;
b) It relieves line officers of the details involved in hiring workers, which is
common under a decentralization plan;
c) It tends to make the selection of workers scientific;
d) It provides a wider opportunity for placing an applicant in several departments
of the company;
e) It makes possible the development of centralized man power pool in a
f) It tends to reduce favoritism as a basis for selection the centralized department
is generally known as the employee office, or the recruitment section. The staff
personnel are attached to it. This enables specialists to concentrate upon the
recruitment function; and soon they become very efficient in the use of various
recruitment techniques.


It is stated that a “requisition” or an “indent” for recruitment has to be submitted by
the line official such “indents” usually specify i) The jobs or operations or positions for
which the person should be available ii) Duration of their employment iii) Salary to be
offered and any other conditions and terms of employment which the indenting officer
feels necessary.

After understanding the company strategies and recruitment policy, the HR
manager has to search for the candidate who can contribute for the achievement of the
company’s Strategies.
Traditional Sources of Recruitment
The sources of recruitment are broadly divided into internal sources and external

a) Internal Sources
 Present Permanent Employees;
 Present Temporary or casual employees;
 Retrenched or Retired employees;
 Dependents of deceased, Disabled, retired and present employees.
b) External Sources
External sources are those sources which are outside the organizational pursuits
external sources are:
1) Campus recruitment
2) Private employment agencies/consultants
3) Public employment exchanges
4) Professional organizations
5) Date Banks
6) Casual applicants
7) Similar organizations
8) Trade Unions

Modern Sources of Recruitment

The sources are divided into internal sources and external sources.
Modern Internal Sources

Employee referrals: Present employees are well aware of the qualifications, attitudes,
experience and emotions of the friends and relatives. They are also aware of the job
requirements and organizational culture of their company.
Hence, the HR manager of the company depends on the present employees for
reference of the candidates for various jobs. These sources reduce the cost and time
required for recruitment.
Modern External Sources
 Walk-in
 Consult-in
 Head-hunting
 Body shopping
 Mergers and acquisitions
 E-recruitment
 Out sourcing

5. Recruitment Techniques
Recruitment techniques are the means or media by which management contacts
prospective employees or provide necessary information or exchanges ideas in order to
stimulate them to apply for jobs.
Recruitment techniques are classified as traditional and modern techniques.

Traditional Techniques Include

i) Promotions: Most of the internal candidates would be stimulated to take up higher

responsibilities and express their willingness to be engaged in the higher level jobs if the
management gives them the assurance that they are promoted to next higher level.

ii) Transfers: Employees will be stimulated to work in the new sections or places if the
management wishes to transfer them to the places of their choice.

iii) Advertising: Advertising is a widely accepted technique of recruitment, though if

mostly provides one way communication. It provides the candidates in different sources,
the information about the job and company and stimulates them to apply for jobs. It
includes advertising though different media like newspaper, magazines of all kinds radio,
television etc.
Modern Techniques Include
Modern recruitment techniques to stimulate prospective employees to apply for
jobs in the company.

i) Scouting: Scouting means sending the representation of the organizations to various

sources of recruitment with a view to persuading or stimulating to apply for jobs. The
representative provides information about the company and exchange information and
ideas and clarifies the doubts of the candidate.

ii) Salary and Perks: Companies stimulate the prospective candidates by offering higher
level salary, more perks, quick promotions etc,

iii) ESOPS: Companies recently started stimulating the employees by offering stock
ownership to the employees through their employees stock ownership programmes

After identifying the sources of human resources searching for prospective
employees and stimulating them to apply for jobs in an organization the management has
to perform the function of selecting the right employees at the right time. The objective of
the selection decision is to choose the individual who can most successfully perform the
job from the pool of qualified candidates.

The selection procedure cannot be effective until and unless;

1) Requirements of the job to be filled have been clearly specified.

2) Employee specifications (physical, mental, social, behavioral etc) have been
clearly specified.
3) Candidates for screening have been attracted.
Essentials of Selection Procedure
The selection process can be successful if the following requirements are satisfied.
1) Someone should have the authority to select. This authority comes from the
employment requisition, as developed by an analysis of the work load and
work force.
2) There must be some standard of personnel with which a prospective employee
may be compared i.e. a comprehensive job description and job specification
should be available before hand.
3) There must be a sufficient number of applicants from whom the required no. of
employees may be selected.

Selection Procedure
Selection procedure employs several methods of collecting information about the
candidate’s qualifications, experience, physical and mental ability, nature and behavior,
knowledge aptitude and the like for judging whether a given applicant is suitable or not for
the job.

Steps in Scientific Selection Process

1) Job analysis

2) Recruitment

3) Application form

4) Written examination

5) Preliminary interview

6) Business games

7) Tests

8) Final interview

9) Medical Examination

10) Reference Checks

11) Manager’s decision

12) Job offer and Employment


Development bases for selection

Job analysis

Written Examinations
Human Resource
Plan Preliminary Interview

Business Games


Final Interview

Medical Examination

Reference Chocks

Assess the fit between Line Manager’s Decision

the job and the
candidates Job Offer


Job Analysis
Job analysis is the basis for selecting the right candidate. Every organization
should finalize the job analysis, job description, job specification and employee
specifications before proceeding to the next step of selection.
Human Resources Plan
Every company plans for the required number of and kind of employees for a
future date. This is the basis for recruitment function.

Recruitment refers to the process of searching for prospective employees and
stimulating them to apply for jobs in an organization. It is the basis for the remaining
techniques of the selection and the latter varies depending upon the former. It develops the
applicant’s pool.

Development of basis for selection

The company has to select the appropriate candidates from the applicant’s pool.
The company develops or borrows the appropriate bases/techniques for the jobs.

Application form
Application form is also known as application blank. The techniques of application
blank are traditional and widely accepted for securing information from the prospective
candidates. It can also be used as a device to screen the candidates at the preliminary level.
Information is generally required on the following items in the application forms. i)
personal background information ii) educational attainments iii) work experience iv)
salary v) personal details vi) references.

Written examinations
The organizations have to conduct written examination for the qualified candidates
after they are screened on the basis of the application blanks so as to measure the
candidate’s abilities in arithmetical calculations, to know the candidates attitudes towards
the job, to measure the candidates aptitude, reasoning, knowledge in various disciplines,
general knowledge and English language.

Business Games
Business games are widely used as a selection technique for selecting
management trainees, executive’s trainees and managerial personnel at junior, middle and
top management positions. Business games help to evaluate the applicants in the areas of
decision making, identifying the potentialities, handling the situations, problem so wing,
human relations skills etc., Business games like group discussion role playing, sensitivity,

Psychological tests play a vital role in employee selection. A psychological test is
essentially an objective a standardized measure of sample of behavior from which
inferences about future behavior and performance of the candidate can be drawn.
Objectivity of tests refers to the validity and reliability of the instruments in
measuring the ability of the individuals. Objectivity provides equal opportunity to all the
job seekers without any discrimination against caste etc., Standardization of test refers to
uniformity of procedure in conducting the tests for all the candidates.
Tests are classified into five types. They are:
1) Aptitude Tests

2) Achievement Tests

3) Situational Tests

4) Interest Tests

5) Personality Tests

6) Multidimensional Testing.

i) Aptitude Tests:

a) Intelligence test

b) Emotional Quotient

c) Skill tests

d) Mechanical aptitude

e) Psychomotor tests

f) Clerical aptitude tests

Types of test

ii) Achievement Tests;

a) job knowledge test

b) Work sample test

iii) Situational Tests

a) Group discussion
b) In basket

iv) Interest Test

v) Personality
Final interview is usually followed by testing. Tests
This is the most essential step in the
process of selection. In this step, the interviewer matches
a) Objective test the information obtained about
the candidate through various means to the job requirements and to the information
b) Projective tests
obtained through his own observation during the interview.

vi) Multi-dimensional testing

Types of Interviews

a) Preliminary Interview:-
Informal interview
This interview can be conducted at any place by any person to secure the basic and
non-job related information.
Unstructured Interview
In this interview the candidate is given the freedom to tell about himself by
revealing his knowledge on various items / areas, his background, expectations interest

b) Core Interview
It is normally the interaction between the candidate and the line executive or
experts on various areas of job knowledge, skill, talent etc., This interview may take
various forms like background information interview, job and probing interview, group
discussion interview, formal and structured interview, panel interview, depth interview.

c) Decision Making Interview

After the candidates are examined by the experts including the line managers of the
organization concerned interviews the candidates once again, mostly through informal

Preliminary Informal interview

Interview Unstructured interview

Background information


Job and probing interview

Core Core
Stress interview
Interview Interview

The group discussion


Formal and structured interview

Panel interview

Decision making interview

Depth interview

Medical Examination
Certain jobs require certain physical qualities like clear vision, perfect hearing,
unusual stamina, tolerance of hardworking conditions, clear tone etc.
Medical examination can give the following information;
1) Whether the applicant is medically suited for the specific job.
2) Whether the applicant has health problems or psychological attitudes likely to
interfere with work efficiency or future attendance.
3) Whether the applicants suffer from bad health.
4) It reveals the applicants physical measurements.
5) It is used to check the special sense of the candidates

Reference Checks
After completion of the final interview and medical examination, the personnel
department will engage in checking references. Candidates are required to give the names
of references in their application forms. These references may be from the individuals who
are familiar with the candidate’s academic achievement or from the applicant’s previous
employer, who is well versed with the applicant’s job performance, and sometimes from

Final Decision by the Manager Concerned

The line manager concerned has to make the final decision whether to select or
reject a candidate after soliciting the required information through different techniques.
The line manager has to take much care in taking the final decision not only because of
economic implications and of the decisions but also because of behavioral and social

Job Offers
After taking final decision, the organization has to intimate this decision to the
successful as well as unsuccessful candidates. The organization offers the job to the
successful candidates either immediately or after sometime depending upon its time
schedule. The candidate after receiving job offer communicates his acceptance to the offer
or request to modify the terms and conditions of employment or reject the offer.

The company may modify the terms and conditions of employment as requested by
the candidate. The company employs of those candidates who accept the job offer with or
without modifications of terms and conditions of employment and place them on the job.

Difference between Recruitment and Selection

Once the required number and kind of human resources are determined, the
management has to find the places where required human resources are/well 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.
Recruitment is only one of these in the entire employment process. Some other use the
term recruitment for selection. But these terms are not one and the same either.

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, where as the selection is the process of finding out the most
suitable candidate to the job out of the candidates attracted (i.e. recruited).

Recruitment is positive as it aims at increasing the number of applications and

selections is some what negative as it selects the suitable candidate in which process the
unsuitable candidates are automatically eliminated. The goal of selection is to sort out or
eliminate those judged unqualified to meet the job and organizational requirements, where
as the goal of recruitment is to create a large pool of persons available and willing to work.
1. When the resources are need and forecasted?

Table No:- 4.1

Factors No. of Percentage of Respondents
Monthly 0 0%
Quarterly 0 0%
Annually 35 35%
Not fixed 65 65%
Total 100 100%
(Source : Primary Data)

Chart No:- 4.1

Resources need and Forecasted

70% 65%

Percentage of Respondents


40% 35%



0% 0%
Monthly Quarterly Annually Not fixed

From the above Graph it is observed that of employees respondents that the
resource are needed and forecasted are most done regularly ( not fixed ) 35% said that the
resources are needed and forecasted were done annually.
2. Does your organization plan the recruitment policy?

Table No:- 4.2

Factors No. of Percentage of Respondents

Yes 100 100%

No 0 0%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.2

Recruitment policy
Percentage of respond




Yes No


From the above chart it is observed that MSPIL plans for recruitment
policies for the better productivity.
3. How do you come to know about vacancies?
Table No:- 4.3
Factors No. of Percentage of Respondents

Advertising 70 70%

Tele-calling 20 20%

Internet 5 5%

Others 5 5%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.3

Awarness about Vacancies

Percentage of Respondents

10% 5% 5%
Advertising Tele-calling Internet Others


From the above chart 70% of employees get awareness about vacancies through
advertising 20% through Tele-calling, 5% of respondents through internet and other
4. Which method do you mostly prefer for Recruitment & Selection?
Table No:- 4.4
Factors No. of Percentage of Respondents

Direct Method 70 70%

Indirect Method 15 15%

Third Party 15 15%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.4

Method for R&S


Percentage of respond




20% 15% 15%


Direct Method Indirect Method Third Party


From the above analysis it is observed that 70% of respondents said that the
company mostly prefers direct method for R&S 15% as them responded that the company
prefers both the indirect method and third party method for R&S.
5. What sources does your company prefer for Recruitment and Selection?
Table No:- 4.5
Factors No. of Percentage of Respondents

Internal Sources 30 30%

External Sources 20 20%

Both 50 50%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.5

Sources of R&S

Percentage of respond





Internal Sources External Sources Both


From the above chart 50% of respondents that the company prefers both the
internal and external sources for R&S, 30% respondents said that the company prefer the
internal sources and 20% prefer towards external sources.
6. What are the sources for internal recruitment followed by your organization?

Table No:- 4.6

Factors No. of Percentage of Respondents
Present Permanent 55 55%
Present Temporary 20 20%
Retrenched Retired 15 15%
Diseased Disabled 10 10%
Total 100 100%
(Source : Primary Data)

Chart No:- 4.6

Sources for Internal Recruitment

60% 55%

Percentage of responds


20% 15%

Present Permanent Present Temporary Retrenched Retired Diseased Disabled
Employees Employees Employees Employees


From the above data is observed that 55% of employees are recruited from the
present permanent employees, 20% are recruited through present temporary
employees,15% are from retrenched retired employees and 10% are selected through
diseased disabled employees.
7. What are the sources for external recruitment followed by your organization?

Table No:- 4.7

Factors No. of Percentage of Respondents
Campus Interviews 0 0%

Placement Agencies 0 0%
Advertisements 70 70%
Public Employment Agencies 30 30%

Professional Associations 0 0%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.7

Sources for External Recruitment

Percentage of respond

0% 0% 0%
Campus Placement Advertisements Public Professional
Interviews Agencies Employment Associations

From the above chart it is observed that the company also prefers the external
sources is which 70% of respondents opinion that the recruitment process will be done by
giving advertisements in various medias and 30% are done with the help of public
employment agencies.
8. How do you rate the Recruitment procedure?
Table No:- 4.8
Factors No. of Percentage of Respondents
Excellent 30 30%

Good 60 60%
Average 10 10%
Poor 0 0%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.8

The Recruitment Procedure

Percentage of Respondents




Excellent Good Average Poor

From the above table 60% of employees were given good rating for the
recruitment procedure done in MSPIL, 30% towards excellent and 15% of them given
average ratings.
9. Which method of selection is followed in the organization?

Table No:- 4.9

Factors No. of Percentage of Respondents
Walk-Ins 20 20%

Interviews 20 20%
Written Test 10 10%

Physical Examination 10 10%

All the above 40 40%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.9

Methods of selection followed

Percentage of respond

20% 20%
10% 10%
Walk-Ins Interviews Written Test Physical All the above


From the above chart it is observed that the company follows 20% of each
selection through walk-ins and interviews, 10% of each through written tests and physical
examinations. Where as 40 % of employees responds towards all the factors are
considered for selection method followed in MSPIL.
10. Does MSPIL have any referral system at the time Recruitment and Selection?

Table No: - 4.10

Factors No. of Percentage of Respondents

Yes 85 85%

No 15 15%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.10

Referral system
90% 85%
Percentage of respond

20% 15%
Yes No

From the above table 85% of employees responds that the company follows
referral system during R&S, 15% of employees responds there are no referral system.
11. How do you rate the selection process?
Table No:- 4.11
Factors No. of Percentage of Respondents
Excellent 25 25%

Good 60 60%
Fair 10 10%

Poor 5 5%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.11

Rating for selection process

Percentage of Respondents

30% 25%
10% 5%
Excellent Good Fair Poor

From the above chart 60% of employees responds a good rating, 25% of them
responds as excellent, 10% of employees responds as fair and 5% of them responds as
poor rating in the selection process.
12. Does your organization recruit the employees through latest method of recruitment
through Internet?
Table No:- 4.12
Factors No. of Percentage of Respondents

Yes 0 0%

No 100 100%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.12

Latest method of Recruitment

Percentage of respond




Yes No

From the above chart it is observed that the company does not follows any
modern as latest method.
13. What does the selection committee look in the candidate?

Table No:- 4.13

Factors No. of Percentage of Respondents
Subject Knowledge 5 5%

Communication Skills 5 5%
Technical Knowledge 15 15%

All the above 75 75%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.13

Selection Committee
80% 75%
Percentage of respond

20% 15%
10% 5% 5%
Subject Knowledge Communication Skills Technical Knowledge All the above

From the above chart it is observed that 75% of employees responds that the
selection committee mainly looks upon subject knowledge, communication skills and
technical knowledge in the candidate 15% of responds that the selection committee mainly
books the technical knowledge in a student and 5% each of them both the subject
knowledge and communication skills.
14. Do you think the procedure adopted for R & S of employees enables to give right
person at the right job?
Table No:- 4.14
Factors No. of Percentage of
Respondents Respondents

Yes 50 50%

No 15 15%

To some extent 35 35%

Total 100 100%

(Source : Primary Data)

Chart No:- 4.14

Procedure adopted for R & S

Percentage of respondents

20% 35%
10% 15%
Yes No To some extent

From the above chart it is observed that 50% of employees respond that the
procedure adapted in R&S is good, 35% says that the procedure is for some extent and
15% says that the procedure adopted is not so good.

 The resources need & forecasted are not fixed.

 MSPIL plans for recruitment polices for getting better results & productivity.

 Most of the employees came to know about vacancies through advertising.

 MSPIL mostly follows direct method in recruitment & selection.

 MSPIL mostly prefers both the internal & external sources.

 Most of the employees are recruited through present permanent employees.

 MSPIL mainly concentrates on advertisements as their external source for the


 MSPIL mainly follows all the method for selection a candidates.

 The selection process of MSPIL was good.

 The selection committee of MSPIL mainly recruits those candidate who posses

appropriate skills.

 The procedure adopted for R&S in MSPIL in good.


 The Company has to appropriately plan for its resource & need forecasting

 It is better by giving Advertisement regarding vacancies; the company has to

follow latest methods.

 The company must also concentrate on retired & disabled employees by giving

appropriate positions & to utilize their experiences.

 The company must also have to concentrate on campus interviews for securing

better employ activity.

 The company has to follow innovative methods at the fine of recruiting & selecting

an employee.

 It will be better if the company does not follow referral systems.

 As the technology is developing it will be better for MSPIL to follow the latest

methods of recruiting the employees.

 The management of MSPIL has to provide better facilities to the employees &

their families which enhance more employee satisfaction for increase in the

1. When the resources are need and forecasted? { }
a) Quarterly b) Monthly
b) Annually c) Not fixed

2. Does your organization plan the recruitment policy? { }

a) Yes b) No

3. How do you come to know about vacancies? { }

a) Advertising b) Tele-calling
c) Internet d) Other

4. Which method do you mostly prefer for R & S? { }

a) Direct Method
b) Indirect Method
c) Third Party

5. What sources does your company prefer for Recruitment and Selection? { }
a) Internal Sources
b) External Sources
c) Both

6. What are the sources for internal recruitment followed by your organization? { }
a) Present Permanent Employees
b) Present Temporary Employees
c) Retrenched Retired Employees
d) Diseased Disabled Employees
7. What are the sources for external recruitment followed by your organization? { }
a) Campus Interviews
b) Placement Agencies
c) Advertisements
d) Public Employment Agencies
e) Professional Associations

8. How do you rate the recruitment procedure? { }

a) Excellent
b) Good
c) Average
d) Poor

9. Which method as selection is followed in the organization? { }

a) Walk-Ins
b) Interviews
c) Written Test
d) Physical Examination
e) All the above

10. Does MSPIL have any referral system at the time Recruitment and Selection? { }
a) Yes
b) No

11. How do you rate the selection process? { }

a) Excellent
b) Good
c) Fair
d) Poor

12. Does your organization recruit the employees through latest method of recruitment
through Internet? { }
a) Yes
b) No
13. What does the selection committee look in the candidate? { }
a) Subject Knowledge
b) Communication Skills
c) Technical Knowledge
d) All the above

14. Do you think the procedure adopted for R & S of employees enables to give right
person at the right job? { }
a) Yes
b) No
c) To some extent

15. Do you provide any suggestions for the development of R&S in future?

Thanking You
Text Books
 Personnel and Human Resource Management Text and Cases By P .SUBBA RAO,

2nd Edition Himalaya Publishing House, Page No. 78-107.

 Human Resource Management Text And Cases By K .ASWATHAPPA 5th Edition

MC.GRAW-HILL Companies, Page No. 143-190.

 Human Resource Management By John M IVANCEVICH 10th Edition

MC.GRAW-HILL Companies, Page No 185-246.

 International Human Resource Management Managing People In A Multinational

Context By Peter J.DOWLING And Denice E.WELCH 4th Edition South Western

Cengage Learning. Page No. 83-113.

 Strategic Human Resource Management By Tanuja AGARWALA, Oxford Page