Indian Telecom Industry & role of HR in it, With emphasis on Airtel - Document Transcript

1. Manisha Maheshwari (roll no 26, A1) IndIan TelecommunIcaTIon IndusTry Last Updated: July-September
2008 The Indian telecommunications has been zooming up the growth curve at a feverish pace, emerging as one of
the key sectors responsible for India's resurgent economic growth. India is has surpassed US to become the second
largest wireless network in the world with a subscriber base of over 300 million in April, according to the the Telecom
Regulatory Authority of India (Trai). The year 2007 saw India achieving significant distinctions: 1 having the world's
lowest call rates 2-3 US cents 2 the fastest growth in the number of subscribers 15.31 million in 4 months 3 the
fastest sale of million mobile phones in a week 4 the world's cheapest mobile handset US$ 17.2 5 the world's most
affordable color phone US$ 27.42 1
2. 6 largest sale of mobile handsets in the third quarter Segment-wise growth Wireless segment has emerged
as the preferred mode of telephone service by the consumers, reflected in the rising share of mobile phone
connections to total connections. 1. The share of mobile phones has increased from 71.69 per cent at the end of
March 2006 to 87.68 per cent at the end of May 2008. 2. While total mobile subscriber base was 277.92 million, wire
line subscriber base was 39.05 million. 3. Consequently, overall tele-density has increased to 27.59 per cent at the
end of May 2008. India is likely to be second largest mobile market in the BRIC nations, with 560 million mobile users
representing the next great growth curve for both mobile and interactive marketing industries, according to a report by
eMarketers. Investment The booming domestic telecom market has been attracting accelerating amount of
investment. During April 2000 to March 2008, cumulative FDI inflows into the Indian telecommunications sector
amounted to US$ 3.84 billion, accounting for 6.81 per cent of the total FDI inflows into the country. In fact, the surge
in mobile services market is likely to see huge amount of investment implying a mobile in the hands of every second
person in the country. Buoyed by the rapid surge in the subscriber base, huge investments are being made into this
industry by companies like • Maxis Communications-owned mobile service provider Aircel • Srei Group's Quippo
Telecom Infrastructure Ltd (QTIL) 2
3. • The Central public sector enterprises(CPSEs) have lined up investments for infrastructure sectors like
telecom energy and power for 2008-09. • Vodafone Essar will invest US$ 6 billion over the next three years in a bid to
increase its mobile subscriber base from 40 million at present to over 100 million. Manufacturing India is emerging as
a handset super-power as more manufacturers set up base in the country, it is not only the world's fastest-growing
telecom market but it is also making remarkable progress in the telecom manufacturing space. The Indian telecom
equipment manufacturing sector is set to become one of the largest globally by 2010. Simultaneously, India's surging
domestic market is also providing excellent investment opportunities in other segments of telecom equipment
industry. • Nokia Siemens Networks (NSN) is shifting its global services business unit headquarters from Munich to
India. • Nokia set up its manufacturing plant in Chennai. • Samsung has set up its GSM mobile manufacturing base in
Manesar. • Motorola has established a manufacturing plant in Sriperumbedur. • Sony Ericsson has set up GSM Radio
Base Station Manufacturing facility in Jaipur and R&D centre in Chennai. • LG Electronics set up plant of
manufacturing GSM mobile phones near pune. • Elcoteq has set up handset manufacturing facilities in Bangalore •
Elextronics has set up an SEZ in Chennai. Value Added Services Market 3
4. India's runaway success in mobile telephony has also given a boost to the mobile value added services
(MVAS) market. According to a study by Stanford University and consulting firm BDA, the Indian MVAS is likely to
grow at a CAGR of 44 per cent 2010. Government Initiatives The Government has taken many proactive initiatives
which has provided a framework for the rapid growth of the telecom industry. • Opening the industry for private sector
participation. • 100 per cent FDI is permitted in telecom equipment manufacturing through the automatic route. • FDI
ceiling in telecom services has been raised to 74 per cent. • Establishment of an independent regulator - the Telecom
Regulatory Authority of India (TRAI)-for the telecom sector. • Introduction of a Unified access licensing regime for
telecom services on a pan-India basis. • Implementation of New Telecom Policy (NTP'99). • Introduction of Calling
Party Pay (CPP) regime and lowering of access deficit coupled with introduction of revenue share regime in ADC. •
Introduction of Mobile Number Portability in a phased manner, starting with the fourth quarter of 2008. • Allowing
service providers to share active infrastructure. Road Ahead According to a report by Boston Consulting Group,
while only one in 20 of the world's first two billion mobile subscribers live in India, as many as one in The
departmentevery four of the next billion subscribers will be an Indian. of telecommunication estimates the total
subscriber base to total 500 million by The Indian2010, out of which 80 million are expected to be from rural areas.
telecom industry's revenue, likewise, is estimated to increase, which according to Ernst & Young is expected to total
US$ 35 billion, accounting for 3.6 per cent of the total GDP of the country. 4
5. With such growth projection, this industry is likely to see increased investments. In fact, total investment is
projected at US$ 76.6 billion during the eleventh plan period (2007-12). Private sector is estimated to continue its
dominant share, accounting for 67 per cent of the total projected investment while public sector accounts for the rest.
Top players The top players based on cellular subscriber (in millions) base were Cellular services can be divided into
two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The
GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA sector is dominated by
Reliance and Tata Indicom. Surprisingly, CDMA market has increased its market share up to 30% thanks to Reliance
 Communication. However, across the globe, CDMA has been losing out numbers to popular GSM technology,
contrary to the scenario in India reasons for growTh 5
6. The two major reasons that have fuelled this growth are 1. low tariffs 2. falling handset prices. problems
faced The bottlenecks for ' Indian Service Low penetration.  Slow reform process. Telecom Industry ' are:
providers bears huge initial cost to make inroads and achieving break-even is Lack of infrastructure in semi-rural and
rural areas, which makesdifficult. it difficult to make inroads into this market segment as service providers have
Limited Huge initial investments. to incur a huge initial fixed cost. spectrum availability and interconnection charges
between the private and state operators. rural Telecom markeT – an emergIng markeT According to numbers
compiled by the Telecom Regulatory Authority of India, nearly 21 per cent of the mobile user base now reside in the
villages of India, where a few years ago none of the operators wanted to venture. As on September 2007, out of the
209 million mobile users in the entire country, 43 million were in rural areas. 6
7. Rural India will wrest 40 percent of new telecom market India’s rural telecom connectivity is poised for
explosive growth in the next five to 10 years, grabbing a 40 percent share of the new market, a study released
Wednesday said. “Of the estimated new 250 million Indian wireless users, in next 5-10 years approximately 100
million will be from rural areas,” said the study by the Federation of Indian Chambers of Commerce and Industry
(Ficci) and Ernst and Young. Operators have demonstrated they can achieve profitability by reducing fixed costs,
controlling variable costs and carefully tailoring services to the requirements of their customers. A similar model with
minor customization could be emulated in the rural areas. The government will roll out new incentives for mobile
networks in rural India. It’s also planned that the ultra-low cost handset of approximately Rs.840 ($20) to the market
with built-in subsidies, lifetime validity and minimal maintenance costs have promoted mobile usage in remote areas.
Moreover, operators could learn from business models that have been experimented across the developing world for
expanding rural connectivity. Reasons for rural inclination Far from being considered as a social obligation, offering
telecom services in rural areas has now become the hot spot for private telecom operators. Nearly 75 per cent of the
mobile users in the villages are now owned by private operators as cellular phones catch the imagination of rural
consumers. Until now, state-owned Bharat Sanchar Nigam Ltd was known to be the only significant rural telecom
operator in the country. Analysts said that the share of rural telecom consumers will continue to increase as operators
have initiated an aggressive roll-out plan to cover remote areas of the country. This is primarily driven by a slump in
the growth rate of mobile user base in the metro and urban areas. According to the data released by the Cellular
Operators Association of India Circle C and Circle B States such as Bihar, Kerala, Madhya Pradesh and Punjab are
showing better growth rates compared to the metros. Therefore, most of the mobile operators are investing heavily in
setting up infrastructure in these circles. 7
8. The telecom regulator has suggested a number of initiatives to make mobile connection attractive, including
lower entry cost to make it more affordable. In a hi-tech market like telecom, Schumpeter's view that competition
through innovation is more important than price holds significance. Technology advancements, lower costs and
competition translate this into benefits for the consumer. Moreover, competition drives innovation.\" - Poonam Madan
Sarmah, Head of Research, Genesis PR. \"We are looking at making the phone a more useful product than just an
instrument to exchange voices. We want to be identified as a great value-added service provider.\" - Harit Nagpal,
Vice President (Corporate Marketing), Vodafone “Talented persons are like frogs in a wheelbarrow, which can jump
at any point of time when they sense opportunities” human resource managemenT The goal of human resource
management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to
manage them effectively. 8
9. The process involves carrying out a skills analysis of the existing workforce, carrying out manpower
forecasting, and taking action to ensure that supply meets demand. This may include the development of training and
retraining strategies. Through HRP an organization strives to have the right number & the right kind of people at the
right place at the right time. recruITmenT According to Edwin B. Flippo, “Recruitment is the process of searching the
candidates for employment and stimulating them to apply for jobs in the organization”. Recruitment is the activity that
links the employers and the job seekers. Usually, the recruitment process starts when a manger initiates an employee
requisition for a specific vacancy or an anticipated vacancy. However, Recruitment is a continuous process whereby
the firm attempts to develop a pool of qualified applicants for the future human resources needs even though specific
vacancies do not exist. recruITmenT process 9
10. sources of recruITmenT INTERNAL EXTERNAL 1. Transfers. 1. Press Advertisements. 2. Promotions. 2.
Educational Institutes. 3. Upgrading. 3. Placement Agencies / 4. Retired Employees. Outsourcing. 5. Retrenched
Employees. 4. Employment 6. Dependants and Relatives Exchanges. of Deceased Employees. 5. Labor Contractors.
7. Acquisitions and Mergers 6. Unsolicited Applicants. 7. Employee Referrals. 8. Job Portals some Top consulTanTs
Recruits 9. Factory 10. Walk-ins, Write-ins and Talk-ins 10
11. laTesT Trends In recruITmenT 1. OUTSOURCING The outsourcing firms help the organization by the initial
screening of the candidates according to the needs of the organization and creating a suitable pool of talent for the
final selection by the organization. Outsourcing firms develop their human resource pool by employing people for
them and make available personnel to various companies as per their needs. In turn, the outsourcing firms or the
intermediaries charge the organizations for their services. 2. POACHING/RAIDING “Buying talent” (rather than
developing it) is the latest mantra being followed by the organizations today. Poaching means employing a competent
and experienced person already working with another reputed company in the same or different industry; the
 organization might be a competitor in the industry. A company can attract talent from another firm by offering
attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is
seen as an unethical practice and not openly talked about. It has become a challenge for human resource managers
to face and tackle poaching, as it weakens the competitive strength of the firm. 3. E- Recruitment Many big
organizations use Internet as a source of recruitment. E- recruitment is the use of 11
12. technology to assist the recruitment process. They advertise job vacancies through worldwide web. The job
seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers
place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their
requirements. Top 5 Job Sites 1 www.naukri.com 2 www.monsterindia.com 3 www.clickjobs.com 4
www.jobstreet.com 5 in.jobs.yahoo.com 9 recruITmenT Trends for '08 1) Bigger paychecks, say 80 percent of the
survey respondents. Of those expecting to increase wages, 64 percent say it will be at least 3 percent, and 17
percent say 5 percent or more. 12
13. 2) Flexible work arrangements are on the rise. Sixty percent of employers offer flexible work plans now —
usually alternative schedules (shifted start and quit times), condensed work weeks or telecommuting, while 39
percent expect to offer some form of flex-time in ‘08. 3) Online candidate screening will grow, and not only the use of
qualifying pre-application questions, but full-blown searching of social networking sites and search engine checks. 4)
Video & audio Resume will be preferred as is a way for job seekers to showcase their abilities beyond the capabilities
of a traditional paper resume. The video resume allows prospective employers to see, hear and get a feel for how the
applicant presents themselves. 5) Retiree rehiring will increase as companies remain pressured from the loss of more
experienced workers. Twenty-one percent say they are likely to rehire retirees from other companies in 2008; another
14 percent plan to provide incentives for workers at or approaching retirement age to stay on with the company
longer. The numbers here aren’t large, but this trend won’t go away. 6) Recruiting diversity workers, especially
workers bilingual, will continue to be an important focus of recruiters. Survey respondents particularly noted “mature”
workers. 7) Freelance or contract hiring will continue to be a key part of the workforce mix, with 31 percent of
employers anticipating a working relationship with freelancers or contractors this year. 8) Perks and benefits will
receive more attention from companies wanting to remain competitive in attracting and keeping workers. In light of
rising healthcare costs, nearly one- in-five employers (19 percent) report their companies plan to offer more
comprehensive or better health benefits to employees in 2008. Ten percent plan to enhance or add perks such as
bonuses, discounts, company cars, stock options, free childcare, educational reimbursement, transit passes and
wellness programs. 9) One in four (26 percent) of the surveyed companies are likely to provide more promotions and
career advancement opportunities in 2008. More than half of workers stated that a company’s ability to offer career
advancement is more important than salary, so employers are taking action to carve out career paths for employees.
Twenty-seven percent of workers say they are dissatisfied with pay, but 67 percent of workers reported they received
a raise in 2007. A quarter of the surveyed workers plan to change jobs within the next two years: 41 percent are
leaving their jobs to find a position with better pay and/or career advancement opportunities; 8 percent are changing
careers; 7 percent say they want to find a company where they would feel appreciated; 7 percent are retiring; and 5
percent plan to start their own business. This survey was released by CareerBuilder.com conducted by Harris
Interactive, tracking projected hiring trends for 2008. The 2008 Job Forecast survey is based on the responses of
3,016 hiring managers and human resource professionals in private-sector companies. 13
14. Telecom Tops In employmenT growTh According to estimates of the World Bank, employment in the
telecommunications sector has grown by 33 per cent since 1994, the highest growth among all the sectors in the
services industry. While the Word Bank numbers, released in its recent report on `India's Services Revolution,' head-
hunters and recruiters say that telecom is still the favorite among higher level professionals. Thanks to the aggressive
rollout of a countrywide network, operators like Reliance Infocom, Tata Teleservices and Bharti have gone on a hiring
overdrive. From a career point of view, telecom sector continues to offer growth and new learning as the sector
matures and the business opportunities expand. And, with new networks and businesses being rolled out, this
number is expected to grow exponentially in the coming months. The growth can also be attributed to the large
number of telecom equipment manufacturers and applications developers from Korea, China and Europe foraying
into the Indian market in their bid to take a share of the pie in the booming telecom industry. These Telecom
companies require large number of telecom engineers, telecom software engineers and Telecom test engineers in
the functional areas of Embedded software development, Analog Digital engineering technology, Telecom
networking, Protocol, Chip Design Engineering, VLSI Software Testing. In the Mumbai Telecom companies there are
Software Engineer jobs, Telecom software Engineers jobs, Quality / Test Engineer jobs, Product Manager job
openings, Network Security Systems Specialist vacancies, NMS Engineer jobs, Network Management specialists,
Managers, UNIX Network Systems Operations Engineers, NMS Administrator jobs, Cisco Specialist Software
Engineer etc. Taking a cue from the demand for telecom professionals, top educational institutions have begun
specialized courses in telecommunication management. Symbiosis in Pune and Amity in Delhi are examples of such
institutions. Even state-owned Mahanagar Telephone Nigam Ltd (MTNL) has set up a training facility for telecom
engineers in Mumbai. HR (employment) in telecom industry: With more and more players entering the industry, the
competition in the industry in terms of attracting and retaining the best talent is also increasing. The employment
scenario in the telecom sector is very promising. The sector is creating employment opportunities and adding 14
15. around 1 lakh people in its workforce. The telecom sector has a huge demand for the trained and qualified
engineers and other professionals specializing in telecommunications. Compensation: According to various studies in
recent times, the telecom sector offers the best salary packages at the entry level i.e. an average of 20k. The average
hike in salaries across the various levels in the telecom sector ranges from 15 to 20 percent. Incentives also form a
part of the compensation till the middle levels. Attrition and retention: Although the sector faces the moderate attrition
rates of 20 to 25 percent, the HR’s prime strategic function in the sector is retaining the talent and employee
engagement. The only functional area which faces the high attrition rate is the sales people in the telecom industry.
Top 10 recruITers In Telecom secTor Recruiters Total No. Of Vacancies 1 Vodafone Essar 45 2 Reliance
communications 44 3 Bharti Airtel 43 4 Tata teleservices 23 5 Cable & Wireless 19 6 IMI mobile 14 7 VSNL Internet
Services Ltd 12 8 Motorola Worldwide 10 9 GTL Limited 4 10 Nokia 3 The ranking is based on the number of
vacancies notified by the company on different job portals (Till 29th January 2008) 15
16. Here rankings of the ten companies in the Indian Telecom sector are given on the basis of their workforce
relationship factors. Ten companies were selected on random basis from the sector. The companies were given a
consolidated rank on a scale of 1-10 on the basis of sum of their individual ranks on various HR practices,
procedures, policies and parameters like recruitment practices, compensation policies, work culture, recognition for
good work, retention, training and development, performance appraisals et al. The scores are consolidated on the
basis of data collected through recent surveys and studies by renowned names like Business Today, Hewitt, IDC
Data Quest, NASSCOM and naukrihub.com hr challenges In recruITmenT In the last few years, the job market has
undergone some fundamental changes in terms of technologies, sources of recruitment, competition in the market
etc. In an already saturated job market, where the practices like poaching and raiding are gaining momentum, HR
professionals are constantly facing new challenges in one of their most important function- recruitment. They have to
face and conquer various challenges to find the best candidates for their organizations. The major challenges faced
by the HR in recruitment are: 1. Adaptability to globalization – The HR professionals are expected and required to
keep in tune with the changing times, i.e. the changes taking place across the globe. HR should maintain the
timeliness of the process 2. Lack of motivation – Recruitment is considered to be a thankless job. Even if the
organization is achieving results, HR department or professionals are not thanked for recruiting the right employees
and performers. 3. Process analysis – The immediacy and speed of the recruitment process are the main concerns of
the HR in recruitment. The process should be flexible, adaptive and responsive to the immediate requirements. The
recruitment process should also be cost effective. 4. Strategic prioritization – The emerging new systems are both an
opportunity as well as a challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing the
tasks to meet the changes in the market has become a challenge for the recruitment professionals. 5. Attracting
highly talented ones - The number of highly talented professionals is less. All the big MNC's are trying to attract these
people with high salaries, perks, incentives etc. There is a tough competition among these companies to get these
candidates on their roles. 16
17. These days, it’s not just salaries which will pull the candidate in but various factors like brand, culture,
location ,job security, reputation of the company etc play a major role in recruiting a talented professional. 17
18. Our Vision & promise By 2010 Airtel will be the most  Targeted by top talent  Loved by more customers
admired brand in India: Benchmarked by more businesses “We at Airtel always think in fresh and innovative ways
about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way
to delight the customer with a little bit more” Bharti Airtel Telecom giant Bharti Airtel is the flagship company of Bharti
Enterprises. The Bharti Group, has a diverse business portfolio and has created global brands in the
telecommunication sector. Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private
telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the
forefront of technology and has steered the course of the telecom sector in the country with its world class products
and services. The businesses at Bharti Airtel have been structured into three individual strategic business units
(SBU’s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile &
fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business
offers broadband & telephone services in 94 cities. The 18
19. Enterprise services provide end-to-end telecom solutions to corporate customers and national &
international long distance services to carriers. All these services are provided under the Airtel brand. Our Brand
Airtel was born free, a force unleashed into the market with a relentless and unwavering determination to succeed. A
spirit charged with energy, creativity and a team driven “to seize the day” with an ambition to become the most
globally admired telecom service. Airtel, after just ten years, has risen to the pinnacle of achievement. As India's
leading telecommunications company Airtel brand has played the role as a major catalyst in India's reforms,
contributing to its economic resurgence. Today we touch people’s lives with our Mobile services, Telemedia services,
to connecting India's leading 1000+ corporates. We also connect Indians living in USA with our callhome service.
busIness dIvIsIons 19
20. fuTure developmenT In the mobile business, Bharti Airtel plans to make considerable investments in
Network expansion to establish presence in all census towns and over 500,000 villages across India by 2010, thereby
covering 95% of the country’s total population. The company’s strategic focus will be on further strengthening the
Airtel brand through best-in-class customer service, which is backed by wide national distribution. The Airtel
subscriber base according to COAI - Cellular Operator Association of India as of May 2008[7] was: 20
21. The total is 67,425,935 or 32.81% of the total 205,460,762 Airtel was theGSM mobile connections in India
till May 2008. achIevemenTs Airtelfirst private player in telecom sector to connect all states of India. is the first
mobile service provider to introduce the lifetime prepaid services the network has spread over 93 per cent
alongand electronic recharge systems. the National Highways and 88 per cent of key rail routes across the State .
Having achieved huge success in mobile services- postpaid and prepaid- Airtel has now entered fixed-line telephony
providing broadband services in 92 cities The company has an optical fiber network of 35,016 km and aacross
India. customer base of 35,440,406 GSM mobile and 1,819,083 broadband subscribers. Airtel is listed on The
Stock Exchange, Mumbai (BSE) and The National Stock Rapidly expands network, to roll out acrossExchange of
India Limited (NSE). all census towns and over 5,00,000 villages – covering over 95% of the Bharti Airtel crosses
the 50 million customer mark – OCT 1,2007 (population. 65million is the latest figure & adding nearly 2 million
subscribers every Becomes the fastest private telecom company in the world to achievemonth) this milestone 21
22. Enters into the league of the world’s top telecom Adding 25000 towerscompanies, moves towards top 5
global mobile companies Wide range of Value Addedevery month expanding their network all over India. One of
the 1st company toServices – like ringtones, caller tunes, news etc It has 25000introduce mobile banking, mobile
bill payments etc For Employees employees & Providewith increase in network, it has wide prospects. attractive
salary to employees, performance turnover, ESOPS( Employee Stock Provides an opportunity for career growth –
from ManagementOptions Programme) Gives an opportunity to employee to grow vertically as well astrainee to
CEO. Gives an opportunity to move any part of the country consideringhorizontally. Aggressive efforts are on to
provide athey have network everywhere.. TargeTs superior network service that is congestion-free and to help
customers get Also, the SMS capacity is sought to be raised fromconnected the first time. the current 5,500
messages per second to 6,500 messages per second by March After establishing itself in the domestic market, Airtel
is now2009. spreading its wings in US by providing its mobile service under the name 'CALLHOME' to the NRIs.
adverTIsemenTs Airtel’s advertising campaigns are always admired. Their idea of creating a signature ringtone with
A R Rehman was brilliant; and they still continue to use that tone. In a masterstroke they elevated the brand without
having to talk of talk time , rates etc. Then came the almost magical ‘Express Yourself ‘ campaign stunningly
executed with excellent imagery and creativity. It showcased the ubiquitous utility of the mobile phone through the
situations ( a fighting couple, a bride entering church, an irate mob) but converted a rational purchase decision to an
extension of one’s voice. And from that Bharti’s market share has kept increasing to being the biggest mobile service
provider. 22
23. They chose the country’s most popular people i.e. SRK, Kareena and Sachin for their campaign & made
connection with people. Its advertisements always touch the chord of the people. aIrTel To focus on rural expansIon
Bharti Airtel, which had 48 million mobile users in September 2007, had 9.80 million subscribers coming from rural
areas. Airtel, the leading mobile service provider, has planned to increase the pace of its network expansion in rural
areas during 2008-09. 23
24. People in the rural markets are ready to go mobile and the growth depends on the strength and the quality
of the network. Distribution has been growing at a rapid pace and Airtel will be in easy reach for all customers in the
State. “We want to increase the brand presence and become far more local,” CEO says. organIzaTIonal sTrucTure of
aIrTel 24
25. deparTmenTs levels 25
26. 98% of organizational success depends upon efficient employee selection The TalenT acquIsITIon /
recruITmenT process The recruitment process is the basic procedure, however there are few changes in different
departments, for e.g. IT dept & Customer Care dept cannot have same type of recruitment process as the abilities &
skills required are different in different department. However the basic process is as following : 1. Prepare the
organizational chart with the support of respective departments based on industry norms & projection of growth. 2.
Co-ordinate with all departments for their manpower requirements. 3. Create the job profile and person specification
as per department requisition. 4. Create the company profile for advertising the company to attract prospective
candidates & also for the consultants etc. 26
27. 5. Follow internal or external methods of Recruitment Commonly used External Methods i. Co-ordinate with
recruitment agencies & HR consultants e.g.. HEED Consultancy, ABC Consultancy etc ii. Advertisements in print
e.g.. Times Ascent, Hindustan Times etc iii. Web - in own website or portals like naukri.com, monster.com etc. iv.
Campus Recruitments Commonly used Internal Methods (IJR – Internal Job Requirement) i. Employees Referral ii.
Transfer & Promotions 6. Application Scrutiny & Preliminary Screening . 7. Shortlist for preliminary interview –
telephonic, video conferencing, personal interview. 8. Organizing further rounds of interview with department heads
etc depending upon the position. 9. Briefing company profile to potential candidates, convincing them about the
organisational strength & about their career path & Compensation. 10. Providing offer letter to selected candidates &
help them in joining formalities within the organization. 11. Induction, followed by training as required. 12. Taking
monthly/quarterly feedback from the department about the candidates who have joined. 13. Organizing market survey
of salaries, job opportunities etc. 27
28. recruITmenT Through aIrTel websITe 28
29. 29
30. 30
31. recruITmenT Through Job porTals ouTlInes for prospecTIve candIdaTes To apply for a position, it’s
important that you have a clear idea of your career progression, including how you wish to utilize your skills and
experience in your next role. There are two (2) ways to make yourself known to us! The first is a general submission
of your CV into one of our Divisions. In this case, you become part of a “pool of candidates” categorized into a
professional skill area. When the Talent Acquisition Team begins a talent search against a vacant role, CVs in this
pool are considered against the selection criteria. If your details are matched you will be linked to the vacant role and
reviewed for suitability well before the role is advertised! The second way is to apply directly to an advertised
opportunity and include a covering letter which demonstrated how and why you are suitable. Useful tips for applying
for positions You are more likely to be successful in the recruitment process if you tell us how you fit the position you
are applying for, i.e. in your covering letter We recommend you only apply for targeted positions for which you have
suitable skills and experience - applying for multiple positions can damage your credibility 31
32. Step One - Tailor your CV Your CV is very important – Think of it like a Passport which should be up-to-date
and current at all times to facilitate “travel” to your next career opportunity! A CV should also “sell” and “market” you in
an interesting and honest manner. A functional CV should highlight the skills and experience you have gained
throughout your career to date. It may be helpful to consider the following tips to enhance your current CV: a.
Compile your CV in reverse order (showing your most recent experience first) b. Show the month and year you
commenced each position c. If there are any gaps in your employment explain these d. As well as responsibilities, list
your achievements in a position e. Keep it concise f. Check and double check your spelling and grammar g. Highlight
in a covering letter why you believe your skills meet the requirements of the position Step Two – Applying Online To
apply for a position you will need to follow the steps in the online application process. As part of this process, you'll be
required to create a personalized profile. Click the 'Apply Online' link at the bottom of the advertised position to create
or update your profile. When you have successfully submitted an application, you will receive a system generated
confirmation email, letting you know we have received your application. As we often receive a large number of
applications for any given position, you may not hear from us again until two or three weeks after we receive your
details, however we are conscious of progressing as quickly as possible and often can advise of your suitability or
next steps before this. If your application will not progress to the next stage, you will be advised in writing via email. If,
after applying for a position, you have not heard from us within three weeks please contact us and ask for the
Recruitment Team. Alternatively you may email us Step Three – Interviewing 32
33. When we progress your application, you will be contacted by phone and informed of the next steps, which
may include an initial telephone interview or face-to-face interview. Step Four – Assessments and Reference Checks
When you progress to the next stages, for some roles you may be required to participate in psychometric
assessments and for all roles there will be reference checks, so please be prepared to provide at least two
professional referees for us to contact. These referees must ideally be people you have reported to in prior positions -
or at least people who have working knowledge of your abilities and experience. Step Five - Being Made an Offer If
you are successful in becoming the preferred candidate, you will be advised of the offer by telephone and promptly
provided with a written employment agreement. The offer of employment is valid for a finite period of time and

This century has belonged to the manufacturing sector. Starting from the days of Fords assembly
line to the present emphasis on quality systems. The next millennium will belong to the
convergence of Information Technology. How organisations are able to leverage IT to get
advantage in a highly competitive market will be the key to success. Leading the way would be
the organisations which are in the IT industry. These are the ones which have shown that the
quickest way to business excellence would be through optimum utilisation of IT.

The IT boom has brought with it, its own set of challenges to organisations. How to put in place
systems and process that are in tune with the IT revolution, how to strategies and compete in the
IT era? etc. But a major challenge that the IT industry per se has been facing is in the field of
Human Resource Management.

The IT industry is a service industry. How well are you able to offer quality service to
individuals and organisations will determine the success of your organisation. This leads us to
the fact that the creativity, innovativeness, knowledge and skill of your employees are your
important assets. How you are able to manage these assets is the challenge that the IT industry is
facing. It is not capital or finance or marketing management that gives the competitive edge but
rather how well you are able to manage your human resources whose intellectual applications
drive your business.

Recruitment has become an important sub system in HR especially in the IT industry. When your
major asset are your Human Resources, it is important that quality people join your organisation.

How you are able to fine tune your recruitment process in a manner that you are able to get the
best talent available and how well you have been able to put systems in place so that the people
that you recruit are a perfect fit for the job and the organisation is one of the major challenges.

The challenge does not stop with recruiting the right person but with how you are going to
manage the performance of your employees. The challenge would be to create a performance
culture wherein opportunities are provided for enhanced performance and where giving out
optimum performance becomes a way of life.

Training & and Development is another area where challenges arise. In the IT industry training
takes a new connotation. It will not be just identifying training needs and giving the required
training. It is foreseeing and anticipating the requirements and develop suitable training so that
the employees are well equipped to handle the challenges forehand.The IT industry is one of the
high paying industries. Since it is also very competitive, vying with each other to attract the best
talent, offering the best possible compensation package to their employees is in itself a challenge.

But the real challenge would be how we are able to incorporate all the sub systems in HR and
help them in achieving the ultimate goal - exceptional performance. In a high performance
driven industry like IT, this becomes all the more important. People have to be groomed to get in
tune with the performance culture. Creating an environment that stimulates the creation of
knowledge, its sustenance and its dissipation throughout the organisation will be the challenge
for organisations in the future. How to go about doing this will fall on the HR department. No
longer will the HR department carry on with its traditional functions. That will take care by
Human Resource Information Systems that will be put in place. The function would be to build
and sustain a performance driven culture. The role will shift to that of a facilitator. Facilitate the
process of change, for change would be the only thing that will be constant in the future. HR will
have to involve the whole organisation in this process and act as a guide, counselor and
facilitator. In the future the competitive edge that the organisations will get will only be through
their human resources. How organisations are able to manage them, will determine whether they
will run the race or be left behind.

HOW THESE CHALLENGES HAVE AFFECTED US :

Any organisation in the IT industry will have to face these challenges.We are leaders in the
industry. And the reason we are leaders is of the fact that we have been able to meet these
challenges quite effectively. As far as recruitment is concerned we have been able to address the
issue effectively. We have an excellent databank where updating takes place on a daily basis.
This serves as the major chunk that addresses our recruitment needs. Further we also use the
services of placement agencies. The real catch lies in our selection process. All the probable
candidates have to go through a battery of tests that not only test their technical skills but their all
round personality to find out if they will fit into the job as well as into our organisations culture.
The rigorous selection process ensures that we get people who will fit into a culture that is our
own. But this challenge of recruiting the right person is a continuos one and one that needs
continuos refinement.

Performance management is a practice that few organisations follow. We happen to be one of

them. We have put in place a system that evaluates the organisation as a whole, the systems and
processes that are followed in our organisation and the performers. This is done on a contineous
basis and the feedback is passed on to the concerned people to take corrective measures. Thus we
have been able to tackle the question of performance in a fairly efficient manner and the quality
of our services serve as a testimony for this.

In the software industry where skill reduncy is very fast there is this need for giving technical
training to the employees on a continuos basis. We are one of the very few who provide our
employees with the opportunity to get trained on various platforms. This apart from keeping our
employees highly skilled, also gives them a sense of security. Apart from this, training is also
given in personality development, team working related areas etc to enhance the quality of life of
our employees.

As discussed earlier the most important of all challenges is in culture building. Now all our
efforts are diverted in bringing about a performance driven culture. The very tight schedule
ensures that our employees have to perform to the optimum. Apart from this the various systems
that we have put in place like the performance management system helps us to work towards
achieving a performance driven culture. We are constantly refining our practices in order create
an atmosphere where our employees are able to perform to their full potential.

MAJOR ISSUES FACED IN RECRUITMENT, ATTRITION AND RETENTION:

- RECRUITMENT:

The major issue would be of getting the right type of person. The issue would be that we first
have to find a person with the required skills and experience, and also he must be suitable for our
organisation. Finding such a suitable person is the obstacle that we will have to cross over.

- ATTRITION AND RETENTION:

Software is one of the industry with the highest attrition rate. The challenge facing software
companies is how to keep this as low as possible. Various companies adopt different techniques
to retain their employees. Most of them offer exorbitant pay packets. But the attrition rate is low
compared to industry standards. Though our compensation has been on par with what the
industry is offering, that's not the reason why our rate is low. It has to do with the opportunities
that are offered to our employees and organisational climate prevailing here. Our employees are
given the opportunity to learn and grow in the company itself. They are given a lot of technical
training and exposure to various types of project. The challenging work makes it difficult to
leave our organisation.

- WORK FORCE RETENTION AND MOTIVATION

Retention and motivation of personnel are major HR concerns today. People in management of
human capital in IT organizations has observed that the average tenure for an IT professional is
less than three years. Further, the use of new technologies, the support of learning and training,
and a challenging environment ranked higher than competitive pay structures as effective
retention practices. Our own recent survey of 1028 software professionals from 14 Indian
software companies, showed that while the professional gave importance to personal and cultural
job-fit, HR managers believed that the key to retention was salary and career satisfaction. Money
was a prime motivator for 'starters', but for those into their third or fourth jobs, their value-
addition to the organization was more important. Monetarily, offering 'the best salaries in
industry' is the minimum every company is doing, apart from performance-based bonuses, long-
service awards, and stock options. Many organizations frequently conduct employee satisfaction
and organization climate surveys, and are setting up Manpower Allocation Cells (MAC) to
assign 'the right project to the right person'. In fact, some are even helping employees with their
personal and domestic responsibilities to satisfy & motivate their workforce!

- ATTRECTING THE BEST TALENT

In a tight job market, many organizations often experience precipitous and simultaneous
demands for the same kinds of professionals. In their quest for manpower, they are cajoling
talent around the world. In such a seller's market, software companies are striving to understand
which organizational, job, and reward factors contribute to attracting the best talent one having
the right blend of technical and person-bound skills. This would mean a knowledge of 'the tools
of the trade' combined with conceptualization and communication skills, capacity for analytical
and logical thinking, leadership and team building, creativity and innovation. The Indian
software industry suffers from a shortage of experienced people such as systems analysts and
project managers, and attracting them is a key HR challenge.

- COMPENSATION AND REWARD

Increasing demands of technology coupled with a short supply of professionals (with the
requisite expertise) has increased the costs of delivering the technology. This makes incentive
compensation a significant feature, with the result that software companies have moved from
conventional pay-for-time methods to a combination of pay-for-knowledge and pay-for-
performance plans. With the determinants of pay being profit, performance and value-addition,
emphasis is now on profit sharing (employee stock option plans) or performance-based pay,
keeping in view the long-term organizational objectives rather than short-term production-based
bonuses. Skills, competencies, and commitment supersede loyalty, hard work and length of
service. This pressurizes HR teams to devise optimized compensation packages, although
compensation is not the motivator in this industry.

- ENCOURAGING QUALITY AND CUSTOMER FOCUS

Today`s corporate culture needs to actively support quality and customer orientation. With
globalization and rapid technological change, quality is of utmost importance for the Indian
companies, which earn most of their revenues through exports. Hence, the HR professional as a
strategic partner needs to encourage a culture of superior quality to ensure customer satisfaction.
To be competitive today, an organization needs to be customer responsive. Responsiveness
includes innovation, quick decision-making, leading an industry in price or value, and effectively
linking with suppliers and vendors to build a value chain for customers. Employee attitudes
correlate highly with customer attitude. The shift to a customer focus redirects attention from the
firm to the value chain in which it is embedded. HR practices within a firm should consequently
be extended to suppliers and customers outside the firm.

Where HR can add the most value

- Start the culture conversation at all levels. One way to accomplish this is to conduct a cultural
assessment or audit of your organisation through employee surveys, focus groups or interviews.
Review your organisational history, leadership styles, HR programming and industry practices to
determine what currently drives and reinforces the culture. Finally, what is your customer
experience? What cultural elements are obvious to customers? Is culture aligned with business
strategy? What needs to change? This can be the basis for healthy discussion at team meetings
and employee chat sessions.

- Develop a business case for cultural change. Why is the change needed? How will desired
changes in culture support the business strategy?

- Work with the senior leadership team to determine the desired culture. Core values, desired
behaviours and shared vision are essential for a positive culture change effort to succeed. Every
leader must embrace the need to change.

- Develop an agenda or action plan for enhancing the culture or bringing about change. Start with
the highest priorities and work on the toughest issues. For your culture to become self
replicating, the way things are done will have to reinforce the core values and the culture.

- Communicate what needs to change and why. Solicit input from people. Once the needed
changes and process for change is defined, tell people what is expected. What are the rewards for
changing, and the consequences for more of the same.

- Change the organisational structure to enable change. Find new ways to accomplish work tasks.
Use teams for one-time projects. Broaden roles and responsibilities.

- Acquire talent based on cultural fit. Identify the characteristics of people who exhibit those
behaviours that you've identified as desirable. The people who fit and thrive in your culture will
perpetuate that culture in everything they do. If you have to choose between the candidate who
has better skills or knowledge but doesn't fit, and a candidate who is slightly less qualified but
fits culturally, choose the slightly less qualified person and provide the necessary training or on-
the-job experience. Get rid of those who don't fit in the culture.
- Redesign your on-boarding process. Make sure that every new hire knows what it will take to
fit in, and understands the cultural imperatives. Talk about the ways of working that lead to
success and those that will derail careers. Create legendary stories of successes and failures.

- Create cultural messages. Be sure that every meeting, every training program, every
communication to people includes cultural messaging and reinforces the values, mission,
traditions and practices.

- Involve everyone. Southwest Airlines has a culture committee, but there are many ways to get
people involved. Try focus groups around topics. Form cross functional teams. Call random
groups of employees together for monthly breakfast or lunch meetings. Engage the help and
support of a group of passionate, committed people to identify cultural disconnects and
recommend remedies.

- Build an internal brand that supports the external brand. Make a promise to deliver a consistent
employee experience. Be sure that your employees know the differentiating elements in their
experience in the organisation that will enhance their work lives and careers. Begin to create an
employer of choice reputation internally and externally.

- Recognise and reward results. Your recognition and rewards should support the culture that you
are working to reinforce.

- Cultivate leaders who promote your culture. Develop excellent leaders who will propel the
culture down the ranks. Identify high potential leaders and promote them. Invest in leadership
development programs. Be sure content reinforces cultural messages. Keep the good ones, and
get rid of those who are unable to pass the culture on.

- Make it interesting and fun. Create contests, activities that enhance the culture. Decorate the
office in inspiring ways. Celebrations and events can reinforce the message.

- Use of HR tools. Something as mundane as the annual benefits enrollment can be a source of
key cultural messages. Every training class should reinforce the basic behaviors and values that
reinforce the culture. Performance review forms should measure cultural fit, as well as, job
performance.

- No one should be locked out of the efforts to build a high-performance culture. Culture has to
become the DNA that forms the building blocks over everything else. So the entire organisation
must have a role in keeping it alive. Work with corporate communications, advertising, and
marketing to capture the culture messages and tout these internally and externally.

With lifetime employment in one company not on the agenda of most employees, jobs will
become short term. Today's high-tech employees desire a continuous up-gradation of skills, and
want work to be exciting and entertaining a trend that requires designing work systems that
fulfill such expectations. As employees gain greater expertise and control over their careers, they
would reinvest their gain back into their work. HR practitioners must also play a proactive role in
software industry. As business partners, they need to be aware of business strategies, and the
opportunities and threats facing the organization. As strategists, HR professionals require to
achieve integration and fit to an organization's business strategy. As interventionists, they need to
adopt an all-embracing approach to understanding organizational issues, and their effect on
people.

Finally, as innovators, they should introduce new processes and procedures, which they believe
will increase organizational effectiveness. With the advent of a work situation where more and
more companies are having to concede that their valued employees are leaving them, a new
concept of career and human resource management is bound to emerge. The focus of this new
paradigm should not only be to attract, motivate and retain key 'knowledge workers', but also on
how to reinvent careers when the loyalty of the employees is to their 'brain ware' rather than to
the organization.