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By SANGRAM KESHARI NAYAK PGDM, FOURTH TRIMISTER
CONTENTS CHAPTER No. CHAPTER-I CHAPTER-II CHAPTER-III CHAPTER-IV CHAPTER-V CHAPTER-VI Appendices Références Title PAGE
Introduction Review of Literature &Companyoverview Research Methodology Findings and Discussion Suggestion& Conclusion Sumary& Conclusion
Contents of Tables Sl. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Name of Table Organization under study Manpower of sample companies Experiences of the sample Basis of recruitment Selection Procedure Important areas of recruitment Present trend of recruitment Relation among employees Reaction about recession Experience and relationship Suggestions for cordial relation Age of the sample Qualification Stream of Education Carrier aim of the sample Opinion regarding recession Effect on business sector Job seeking behavior of sample Placement of Student Means to over come recession Page Number
Qualification Vs impact of recession Suggestion
ABSTRACT A study entitled” Impact of Recession on man power recruitment at Bhubaneswar was undertaken to understand and examine its impact on business house and job seekers in general and recruitment process, selection, placement, package and organizational situation in particular. The sample of the study consisted of ten company executives and twenty five job seekers qualified indifferent professional lines. The sample was personally interviewed by means of a structured schedule developed on the basis of objectives and pre-tested for its validity. The outcome of the study reveals that company executives are in view that present recession has badly affected the business at Bhubaneswar resulting reduction in budget, size of business, size of man power, production and productivity of different firms. The effects have been realized in the process of selection and recruitment of the employees in almost all companies. The job seekers who constituted sample from different professions are in opinion that recession has affected selection, recruitment, pay package and size of man power recruitment. They are in view that to save from ill effects of recession one has to improve core skill, communication skill and develop personality to avail jobs in present market. With growing effects of recession there has been reduction in man power size. The sample is also in their opinion about future of their jobs. The study recommends that to get a job in the
market increase in quality of education is necessary. Moreover, expansion of industries, subsidy of govt, and taking of enterprise at personal level may reduce the ill effects of recession to a considerable effect.
Chapter 1 INTRODUCTION The sensitive event of this century is recession in the world. The entire world irrespective of rich or poor has witnessed the ill effects or recession. The problems arising out it touches poorest of the poor and it is more so in case of developing countries., The ill effects of recession in entire globe has became a matter of great concern. The economists, social scientists, management professionals and all others who are concerned with problem have different views regarding cause of recession. Whatever may be the reasons of recession, the effects are clearly visible in business houses, government sector and nongovernment sectors. The immediate ill effects were realized in recruitment sectors. The scope for employment was reduced greatly and the service holders were sacked or were asked to manage with reduced salary. The ill effect of was also visible in price rise, field of specialization, scope of expansion of business and communication industries like IT sector. A common man in the street is now aware of ill effect of it.
The recession has been observed in management areas relating to academic fields and recruitment. The aspirants of management profession are looked down with down sizing of man power in different companies .It has been reported that big companies in the world have been left with no option except to reduce the man power may be of any branch to bring a balance in financial position. Many IT professionals coming back to India from abroad have been reported frequently in news. This has brought concern in the minds of many people. The social ill effects of recession have been found in terms of suicide of IT professionals. Many feel how to manage themselves when their salary structure has been brought down or they are out of job. The family members depending on them for living have also been affected equally. On the whole the ill effects of recession have been realized at all sectors. In developmental programs, the effects of recession have been reported by many. The government budget structure, planning of new ventures, initiation of new projects, and other social sector activities have been seriously affected. With decrease in profit many of the business people in the world have reduced their activities. The budgetary provision either at public sector or private bodies have became imbalance. The common people on other hand faced problems of price rise and unemployment. The developing countries like India, Bangladesh, Nepal, Pakistan have been facing problems price rise and unemployment. Government authorities in India have taken a view that as per the strict theoretical interpretation, global economic recession has not yet engulfed Indian economy. As per the economic theory, unless two
successive quarter periods record a negative growth in GDP, the economy is not supposed to be having economic recession. Indian economy, so far, it has not recorded negative GDP growth rate, in two successive quarters and hence, technically or theoretically speaking, it is not supposed to be under economic recession. • Companies are closing, Sales are not picking up, Suddenly cash has evaporated from the market ,Profitability is severely hit The Indian financial sector a relatively new industry when it took off post economic reforms generated a substantial amount of wealth and employment within a short span of time. According to recent study by Associated Chambers of Commerce and Industry of India, employment generation in the top six sectors, which include finance, fell from 35 percent in the first quarter to 15.8 % in the second and 10.8 percent in the third. In the financial sector, the share of job creation dropped from 7% in the first quarter to 2 % in the third quarter, How ever the current crisis is different and we can not escape its impact. India is more dependent on the global economy now than ever before. Although our banks had a very small exposure to sub-prime loans, we have been affected by the sub-prime crisis. Global liquidity dried up and western markets started shrinking. This resulted in much lower capital flows to India’s which is turn have knocked off more than 50% age points of the stock market index in less than a year. Indian companies suffered a double whammy with the shrinking of export markets and access to capital. The well-being of the financial services sector is directly linked to the stock markets and the health of domestic business.
With both in some trouble, the short-term outlook of the sector is not very promising. The automotive sector in India, which in recent years was on the fast track, has been suddenly forced to apply the brakes. The steel fall in the sales of vehicle and components and the decline in exports have made major automobile players decide to put on hold new projects, downsize production and impose job cuts. Banking sector has been equally affected. Banks have been forced to reduce rate of interest and release more loans to check price rise which is not a good sign as claimed by economist. The over all picture of recession being hazardous there is need to make an analysis at micro level in order to know the reaction of entrepreneurs and young professionals those who aspire to join corporate world. MEASURES TAKEN BY THE GOVERNMENT Following different measures are taken by the government to control over the recession. 1) Interest subvention of 2% has been extended till 30-09-2009 to the following labor intensive sectors for exports: Textiles (including Handlooms), Handicrafts, Leather, Gems and Jewellery, Marine products and SMEs. 2) Additional funds of Rs. 350 Crores provided for export incentive schemes; 3) Market linked focus product scheme extended for bicycle parts, Motor Cars and Motor Cycles, Apparels and clothing accessories, auto components, etc.
4) Rs. 1100 Crore provided to ensure full refund of claims of CST/Terminal Excise duty/Duty drawback on deemed exports. 5) Continuation of Duty entitlement passbook (DEPB) scheme up to 31st December 2009. 6) Additional fund of Rs. 1400 Crores provided for textile sector to clear the backlog claims of TUF. 7) Export duty on iron ore fines eliminated for lumps, reduced to 5%. MEASURES TAKEN BY RBI 1) Increased in Liquidity to the banks for improving credit flow. 2) Reducing CRR, SLR, Repo rate and Reserve Repo rate ( from Oct 08 CRR reduced from 9% to 5%, SLR reduced from 25% to 24%, Repo rate reduced from 7.5% to 5.5% and Reverse Repo rate reduced from 6% to 4%. 3) A special re-finance facility has been put in place for banks for the purpose of extending finance to exports, micro and small enterprises, mutual fund and NBFCs. Provisioning requirements. 4) Ceiling rates on export credit in foreign currency has been raised to LIBOR+350 basis points subject to the condition that the banks will not levy any other charges i.e. service charge, management charge, etc. except for recovery towards out of pocket expenses incurred. 5) Bhilwara in Rajasthan and Surat in Gujarat have been recognized towns of Export Excellence, for textiles and diamonds respectively. HOW TO CHALLENGE • Tap Indian market which is big. • Lower the prices to increase the sales. • Lower the wages of employees.
• There are chances of getting foreign market as foreigner producer will be doing for outsourcing to reduce their cost. • Due to an un-employment wages will come down. However, the reality is that, the illeffects of global economic recession are already seen over Indian economy. Already, certain important sectors of Indian economy like exports, real estate, textiles, IT and transport equipment appear to have been severely affected. Since October-2008, exports from India have shown a negative trend, which is noticed for the first time over the last five years. There has also been flight of foreign capital from Indian portfolio sector, adversely affecting stock market index, which has nosedived to less than five figure range, sustaining a drop of more than 50 percent. All this has resulted in slowing down the growth rates in Indian economy in almost all major economic sectors. Keeping these objectives in view a study was designed to study the effects of recession at Bhubaneswar, the state capital of Orissa to investigate into the following objectives. Objectives of the Study The specific objectives of the study are,
1. To find out the recruitment pattern of some local companies during last five years at Bhubaneswar. . 2. To find out effect of recession on recruitment policy, selection of candidates, methods of recruitments, salary structure and promotion opportunities in the companies under study.. 3. To ascertain the reactions of employees as well as job aspirants in the context of present recession in the location of study. 4. To suggest the remedial strategies to overcome the impact of recession at micro level in the specific companies at Bhubaneswar.
Scope of Study: There has been sensation among social scientists to carry out studies on effects of recession. Such studies have implication in making decision so that business houses, government sectors, and corporate sectors can plan their programs accordingly. The findings of the study are useable for many situations .The students of the management stream and employees of corporate houses can make use of findings in making their attempt to see world in the context of recession..
Limitation of the study: The present study has many limitations. These are small sample size, location specific opinion based and academic exercise. Further, the study being an academic exercise its application is also restricted. The student sample respondents are not free of biasness in view of their urgency to get a job. These limitations are to be kept in mind while of the results of the study. Chapterization of thesis: Keeping the requirements of scientific writings the thesis has been arranged in chapters like, Introduction, Review of Literature and present view of problem, Research Methodology, Findings and Discussion, Summary and Conclusions with recommendation and appendices ices and references.
Chapter II LITERATURE REVIEW The world is experiencing an unprecedented economic slowdown. There seems to be no end to the US financial crisis. It deflationary effects are
not spreading to other economy. Though it is true that we are in global recession, the media hype is so high that there is panic virtually everywhere. There is a clear lack of understanding of the word “recession”. Economic describe recession as reduction of country’s GDP (Gross Domestic Production) for two consecutive quarters i.e. an increase in unemployment (1.5% in a period of 12monthHow long will this recession last, is the question everyone asks. The IMF (International Monitoring Fund)Chief Economist says that “the worst is yet to come”. India is one of the country relatively less effected by global economic crisis, but millions of families affected. However the agri sector is very less affected. Today ,various countries central banks are adopting preventive measures to stop the recession and rebuild the economy .The National Bureau of economic research in USA defines a recession more broadly as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP growth, real personal, income employment, industrial production and whole sale retail sales. Some economists suggest that a recession occurs when the natural growth rate in GDP is less than the average of2%. A recession may be defined as a contraction phase of the business cycle or a period of reduced economic activity. Economic recession has consequences for the labor market in different ways depending upon the nature and extent of its impact and depth, and the sectors that tend to have suffered from the worst impact. For example, Betcherman and Islam (2001) pointed out that during the
Asian crisis unemployment increased, earnings of workers fell and workers rights were endangered; consequently various adjustments took place in the labour market such as internal and international migration and participation in informal sector. Jones, Hull and Ahlburg (2000) noted that unemployment rate increased in all the crisis affectedcountries, mainly in urban areas and was concentrated in the construction, finance, real estates and manufacturing sectors. Knowles, Pernia and Racelis (1999) pointed out that employment in agriculture and services sector has increased in several countries during the financial crisis. Horton and Mazumdar (2001) found that labour participation rate decreased more for vulnerable groups, such as young workers, women and older workers compared to that of prime-age males in both absolute and relative terms in the South East Asian region during the time of crisis. Pernia and Knowles (1998) identified that female workers are more likely to lose their jobs than their male counterparts as they are mostly the secondary earners and they usually do not belong to labor unions. However, Moon, Lee and Yoo (1999) revealed that males were more adversely affected than female in Korea during the crisis in 1990s. Knowles, Pernia and Racelis (1999) found that the main form of impact of the crisis in the informal sector is the decline in the real income per worker rather than open unemployment. According to Betcherman and Islam (2001) the increased contribution of self-employed and unpaid family workers in the relative shares indicates that many workers move from formal to informal sector. Overseas migrant workers, working in South East Asia, were seriously affected during the financial crisis. Manning (2002) found that three of
four crisis affected countries (Malaysia, Korea, Thailand, Hong Kong) which imported workers had curtailed worker intake. Abubakar (1999) described that in some cases migrant workers were forced to work longer hours. Sek-hong and Asis (1998) a large number of Bangladeshi workers who worked in the construction and services sector in Malaysia lost their jobs; as repatriation was not easy, most of them became undocumented migrant workers. Singapore’s migrant workers were not severely affected, and Hui, Wing-Tat (1998) mentioned that this mainly owed to Singapore’s emphasis on workers’ performance rather than nationality in case of retaining workers. Owing to the Asian Financial Crisis, there was a substantial decline in outward transfer of remittances from the affected countries (Ahmed, 1998). A survey of literature pertaining to the East Asian financial crisis of the 1990s indicate that and Lee (1998) stated that local workers were more adversely affected than the guest workers in Hong Kong. According to Battistella in the context of a global economic crisis the most vulnerable areas of countries such as Bangladesh are likely to be export-oriented sectors, manpower export, remittance and domestic resource mobilization. Aid inflow could also be hit by the crisis. All such developments were likely to have adverse impact on workforce employed in those sectors and the labour market associated with those developments. It is important that a review of the repercussions of the current crisis is carried out both at the level of Bangladesh’s partners in the global economy, and also at the level of the domestic economy with its various sectoral dimensions
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There is a lot of talk about economic recession nowadays. People are complaining how economic recession is making their lives worse. The economic recession often refers to the two quarter of negative economic growth. A severe recession which lasts for more than two years becomes a depression. A recession is characterized by rising unemployment, increase in government borrowing, decrease of share and stock prices, and falling investment. All of these characteristics have effects on people. The world is experiencing an unprecedented economic slowdown. There seems to be no end to the US financial crisis. It deflationary effects are not spreading to other economy. Though it is true that we are in a global recession, the media hype is so high that there is panic virtually everywhere. There is a clear lack of understanding of the word “recession”. Economic describe recession as reduction of country’s
GDP (Gross Domestic Production) for two consecutive quarters i.e. an increase in unemployment (1.5% in a period of 12 months). How long will this recession last, is the question every one asks. The IMF (International Monitoring Fund) Chief come”. India is one of the country relatively less effected by global economic crisis, but millions of families affected. However the agri sector is very less affected. Today, various countries central banks are adopting preventive measures to stop the recession and rebuild the economy. The National Bureau of economic research in USA defines a recession more broadly as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP growth, real personal, income employment, industrial production and whole sale retail sales. Some economists suggest that a recession occurs when the natural growth rate in GDP is less than the average of 2%. A recession may be defined as a contraction phase of theEconomist says that “the worst is yet to business cycle or a period of reduced economic activity. Recession has already arrived in US, UK, Major EU economies and Asian Economies. In Asia China, India and Japan are the dominant economies. The US economy has entered into recession and growth is projected to be 0.1% in 2009 as against 1.6% in 2008. Europe will grow by 0.2% in 2009 as against 1.3% in 2008. Japan will witness a growth of 0.5% as against 0.7% in 2008. These three countries account for about 40% of our exports and thus the slow down does not auger well for Indian exports. Economy has a much bigger impact today than earlier.
Given the size of the US economy, a one percent reduction in its rate of growth would be bigger than 10 percent increase (to 20.5 and that is unlikely) in the rate of growth of the Indian economy.
People have a general understanding of the recessions' negative effects. But how does an ordinary consumer get affected by a recession, employment in particular is not really clear. A recession is rarely triggered by one specific cause. It is rather a combination of factors often linked to recessions. These factors may be external (such as conflicts, wars, political instability or market crashes in other parts of the world) or internal (interest rate increases, housing market crash). At any given time, there are contradictory opinions on whether or not a recession is coming. Some analysts think we’re headed towards a recession, others think we are in one and there are even others that say we just got out of one. Even while deep in recession, some economists give grim predictions while others are optimistic. Chapter III RESEARCH METHODOLOGY The chapter ‘Research Methodology’ is the core aspect of study. While formulating the study different aspects like, importance of study, need of the study, utility of result sample, place of interview, cost involved and time required were taken into consideration. As the present situation
in management stream is faced with serious problem of recession, it was decided to take an investigation on this aspect. While deciding various dimensions of the study the following steps were followed. 1. Selection of problem 2. Selection of topic 3. Study design 4. Sampling procedure 5. Sample size 6. Methods of data collection 7. Analysis of data 8. Preparation of manuscript and submission. 1. Selection of Problem and topic. The present situation in management stream is of more concerned with recruitment pattern because of recession. This has direct effect on the career of management professionals. Being a student of management, it was decided to make an attempt to investigate into the feeling and reactions of the job aspirants as well as persons in job. Therefore the topic ‘Effect of Recession on Recruitment Pattern at Bhubaneswar’. As the recruitment and placement are the major problems in business and corporate houses the above mentioned topic was specifically selected. 2. Study Design: It was decided to opt for ex-post facto research approach experimental approach was out of question. The feeling, reaction and interest of the job aspirants can better be understood with dependent and independent variable analysis. As the recession has already occurred and effects are realized at every step, it was finally decided to work in the line of ex-post facto research design.
3. Sample and sampling Procedure: For meeting the requirements of the objectives of the study samples were decided from both who are in job and who are searching after it. I t was decided to take some employees of corporate houses at Bhubaneswar and students of different streams looking after job. Because of time constraints, a purposive method of sampling was followed. Finally the sample of the following sections was decided to be interviewed. (1). Executives and employees of companies like (2) Students of streams of management, general graduate and others. The total sample of the study constituted 10 employees and 25 job seekers of different streams. Total sample was 35. 4. Methods of data Collection: For collecting required information an interview schedule based on objectives was developed. One set was for students of job seekers and another set was developed for employees of different companies. (a) Components of Interview Schedule: The Interview Schedule was developed consisting of three parts. ( Part I: Part I of the schedule contained variables like preliminary data pertaining to personal information like, age, designation/profession, years of experience, date of birth etc. Part II. The Part II portion of the schedule contained the following important variables. (i)Type of Companies (ii)Total number of employees (iii)Major Product (iv)Method of recruitment
(v)Relation among employees (vi)Budget Provision (vii)Selection procedure for recruitment (viii)Change in recruitment policies (ix)Satisfaction of employees Part III. This part of the schedule contained variables like (i) Business organization (ii) Impact of recession (iii) Package for recruitment (iv) Salary structure (v) Reaction towards different aspects of job (vi).Suggestions to over come the effects of recession. The interview schedule so developed contained both close ended and open ended questions to secure reliable information. Pre-testing: The Schedule was pre tested before finalization to check up its suitability in terms of understanding, recording to add or subs tract items as per need. (b) Interviewing: The data collection was done in months of June and July 09. The respondents were personally contacted and explained the need of study and their cooperation. The responses were recorded by the investigator at some places while the respondents filled some at other places. After interviewing each schedule was edited for completeness of data. © Tabulation and Analysis of data: The data so collected and recorded were transferred to data sheet with suitable coding procedure.
The coded data were decoded for formation of tables and analysis. Single way and bi-way tables were formed to analyze the data in the context of objectives stated earlier. (d).Statistical Analysis: To bring out relevant findings of the study, the following statistical methods were adopted. (i). Percentage analysis: The percentage analysis was worked out frequency of particular cell multiplied by 100 and divided by total number of respondents. (ii) Mean Score: The total score obtained in each scale point are drawn out of which the mean score was obtained by dividing it with number of respondents.
Chapter IV FINDINGS AND DISCUSSION The project report ´ Impact of Recession on Man power Recruitment at Bhubaneswar” was carried out Bhubaneswar the state capital of Orissa to determine the impact of recession on man power recruitment at public and private sectors with specific objective of job security of the job seekers. A randomized sample of 35 respondents consisting of company executives and job seekers at the rate of 10 and 25 respectively were interviewed to secure desired information.. The findings have been analyzed after statistical treatment. The results have been presented under the heading of (i) Reactions of employees of different companies
operating at Bhubaneswar and different fields of education.
(ii) perception of job seekers from
Part I. Reaction of the employees The reaction of the employees were studied from different angles which include type of company, their age level, years of experience, size of the employees of companies, basis of recruitment, selection procedure, important area of recruitment, status of recruitment, and their reaction about recession relation among the employees in view of recession,.
1. Organizations under study: IT was proposed to cover some
important organizations and study their recruitment patter. The following organizations were selected for the purpose after due permission of the concerned authorities. Table 1 Organizations under study Sl.No. 1 2 3 4 5 6 7 8 Organization Nubulus Consultancy (P) Ltd.A/167 Saheed Nager Bhubaneswar Thalani Agro-Industries Pvt.Ltd.. Mancheswar BhubaneswaChemicals Trahi Jaganath Construction Saheed Nager Bhubaneswar Leelac Promoters Pvt. Ltd. C16BaramundaBhubaneswar Eastern Plantation Pvt. Ltd. 42, Khandagiri Bhubaneswar .Eastern Leasing and Investment Pvt. Ltd. C-16 Baramunda Bhubaneswar Sailaja Software Export Pv Bharat Money and Market Research Pvt.Ltd. A 29 2nd Floor Ruchika Market Bhubaneswar Product Insurance Chemicals and Pesticide Construction Real estate Planting Materials Shares ans Stocks Software Marketing Research
Janaki Consultancy Services Saheed Nager Bhubaneswar Zinfra Construction Pvt. Ltd. Construction,Plot No 209 Saheed Nager Bhubaneswar
A look at the table reveals that sample includes a good number of companies operating at Bhubaneswar. These include construction, real estate, soft ware, insurance, share etc. It is therefore can be said that selection of sample was appropriate as per need of the study. However, other companies were contacted and were dropped because of unwillingness to participate. 2. Manpower size of the Companies. It was required to know the size of man power these companies have in order to know the impact of recession. The result obtained in this regard is given below. Table 2. Manpower of sample companies Man power size 1. 0-25 2. 26-50 3. 51-100 4. 101 and more Total Frequency 4 1 1 4 10 Percentage 40.00 10.00 10.00 40.00 100.00
Findings reveal that majority of sample companies have man power more than 26. It shows that selection of sample organization has good man power and the executives representing them as our sample will provide reasonable and valid response. In a place like Bhubaneswar, the companies having man power more than 25 shows theit standing in business. 2. Years of Experiences of Sample: It is equally important that sample should have enough experience to provide responses to meet the
requirements of study. In finding out the years of experiences of the executive sample the following results were obtained. Table 3. Experiences of the sample Experience 1 Up to 4 years 2. 5 to 8 years 3. More than 8 years Total Frequency 6 2 2 10 Percentage 60.00 20.00 20.00 100.00
Data in table 3 reveals that majority of the sample had experience in job up to four years followed by more than five years. With this much of job experience that too at executive level the responses ought to be reasonable and valid. The sample was appropriate for the study. 3. Basis of recruitment during recession: With change of time and impact of recession it was assumed that some criteria of selection and recruitment have been followed deviating than the past methods. The data so collected are presented in table given below. Table 4. Basis of recruitment Basis 1. Specialization 2. Experience 3. Smartness Total Frequencies 2 6 2 10 Percentage 20.00 60.00 20.00 100.00
Results indicate that in companies the major criteria for recruitment is experience followed by specialization and smartness of the candidates. There have not been any major changes in the selection of candidates for job so far as basis of recruitment is concerned. Experience of the candidates in the job is given utmost importance. This is so because experience helps to pick up the job quickly and that is the aim of every company to save time and money.
4. Selection Procedure; Selection procedures followed by different companies are different. But there are some standard procedures followed by many of them. While examining the selection procedures followed by the sample organization the following information were obtained. Table 5 Selection Procedure followed Procedure 1. Written test 2.Group Discussion 3.Personal interview Total Frequency 2 3 5 10 Percentage 20.00 30.00 50.00 100.00
Data reveal that personal interview is given much more importance in majority of the organization conducting test for recruitment followed by group discussion and written test. It is observed that these three components, i.e. personal interview, group discussion and written tests are common so far as the selection procedure is concerned. 5. Important area in recruitment: In view of recession there has been concern to reduce size of man power in organizations. It has effect in selection procedure also. In finding out the emphasis in selection of candidates with respect to technical, general and managerial aspect, the following information were obtained. Table 6. Emphasis in selection of candidates Areas of Emphasis 1. Technical 2.General 3. Management Total Frequency 7 1 2 10 Percentage 70.00 10.00 20.00 100.00
Data reveal that technical people are preferred maximum followed by managerial professional while least importance is given to general candidates. It may be due to requirements and job specification for which technical professionals are given more importance than others.
6. Trend of recruitment: Due to recession that has been attempt for down sizing the man power in many organizations. The views of the sample respondents in this aspect were recorded as shown in table below. Table 7. Present trend of recruitment Trend Frequency Percentage 1. Increase 1 10.00 2. Decrease 6 60.00 3. Same 3 30.00 Total 10. 100.00 Results reveal that there has been decrease in recruitment of man power due to recession or the status quo is maintained. The effect of recession has been visible in recruitment of man power for which there has been disappointment among the young professionals. Because of recession, the change is observed in case of selection of professional line by the students. 7. Relation among the employees: An attempt was made to know the existing relation among the employees of different organizations owing to effect of recession. The results have been obtained as reflected in table below. Table 8. Relation among the Employees Relation 1. Very cordial 2. Cordial 3. Manageable 4. Not cordial Total Frequency 2 7 1 0 10 Percentage 20.00 70.00 10.00 0.00 100.00
Results show that relation among the employees in positive side. Cordial relation among the employee indicate that even there is struggle to keep the job, there has not been any problem in maintaining good relation among the employees of different levels of their respective organizations. 8. Reaction about the impact of recession: Recession and its impact have been realized at all the levels. It has affected employees, customers as well owners of the companies. An attempt was made to know the reaction of the sample so far as impact of recession was realized by them. Table 9. Reaction about Recession Reaction 1. Reduction in business 2. Reduction in profit 3. Reduction in size of customer 4.Reduction in employees benefit 5.Reduction in recruitment 6. Reduction in incentives Mean Average Average Score 4.00 3.90 3.90 3.60 3.60 3.20 3.70
The data reveal that reduction in size of business is found to be highest followed by reduction in profit and reduction in number of customers. These effects have been realized by the employees of different organizations. The least effected areas are, reduction in incentives, employees benefits as these were decided at the time of theirappointment. The recession was not at that time. The reduction in recruitment is observed but minimum employees are to be maintained to discharge the most essential activities. (9) Experience and Relationship In finding out relation between satisfaction and relation of the office the following
Experience 2-4 5-7 8-10 Total
Table-10 Experience and Relationship Very cordial cordial Manageable 1 4 1 1 2 0 0 1 0 2 7 1
Total 6 3 1 10
Data in the table reveals that employees with less experience maintain a good relation than senior people. It is therefore concluded that at the beginning of the job employees maintain good relation Looking at the factors studied in relations to recession the summarized form of finding follows effective organization, impact on budget, selection procedure and satisfaction label have been seriously affected. (10) Suggestion for remedial Majors In finding out the suggestions to overcome ill effect of recession the following result up to date.
Table-11 Suggestion for remedial Majors Suggestion Frequency Good performance 4 Market oriented 3 appraise Team spirit 3 10 % 40.00 30.00 30.00 100%
The study reveals that good performance, oriented approach and team spirit may help to overcome bad effects of recession Part II. Job Seekers The second part of the study deals with reactions of the job seekers towards recession and its impact. The professional students of different fields are alert to the job world. Since recession had badly affected the job market it was interest of the study to know their reaction to job market. Their reaction has been studies the different angels: (1) Age of the responds
The sample responds have been classified in age. Categories as shown in table below: Table-12 Age of the responds Age Up to 20 21-22 23-24 25-26 Total Frequency 0 6 10 9 25 Percerntage 0 24.00 40.00 36.00 100%
A look at the table indicates that majority of the student samples are the age group of 22-26. At graduate and post graduate the students attain age in between 21 to 25 years and then enter into job. It is so because the responds are in graduate label after passing graduate label. (2) Educational Qualification Education and seeking of job are interrelated. The students after securing qualification try to fit them to different jobs. In finding out the qualification back ground of the students, the following results were obtained Table-13 Qualification Qualification Graduate Post Graduate Doctoral Total Frequency 23 2 0 25 Percentage 92.00 8.00 0 100%
It was interesting to find that qualification of sample student accounted for 92% are graduate and 8% post graduates. Therefore the sample students are in search of job as the educational level is found at graduate and post graduate level. (3) The Stream of Education sample was categorized in terms of general, technical and
The stream of education and job availability in market are correlated. managerial branches.. The distribution of sample on education is as follows:
Table-14 Stream of Education Frequency Percentage General 7 28.00 Technical 7 28.00 Managerial 11 44.00 Total 25 100% The finding reveals that 41% of samples were MBA and equal percentage engineer and general. In other words, the samples are drawn rightly to represent profess canal lines in view of in recession and job in market.. (4) Carrier aim There is always a tendency on part of the professional to seek job as per their preference and specialization. Even in same professional line the interest of the students’ differs. The study attempted to find out carrier plan of the sample as has been indicated in table below: Table-15 Carrier aim of the sample Management executive Business Technical Bank service Marketing Social Service Total 3 4 6 8 2 2 25 12.00 16.00 24.00 32.00 8.00 8.00 100% Stream
Data reveals that 32% are interest for bank service followed by 24% technical, business 16% and management executive 12%. However, the
8% were interested in marketing and equally for social service. With this back ground their opinion regarding recession was studied. Of the sample 88% had some experience in job while 12% did not prior to this investigation. (5) Opinion about recession The job seekers and recession are closely associated in terms of job, salary, package and position. In examining the opinion of the sample regarding the effect of recession the following results up to date. Table-16 Opinion regarding recession Impact Economic status of people Employment GDP Efficiency Market Frequency 10 9 7 12 3 25 % 40.00 36.00 28.00 48.00 12.00 100%
The result reveals that impact as expressed by the sample is on economic status, employment and efficiency of the employees. However, its impact on GDP is also realized by sample to an extent of 28% and marketing 12% .In other words, the student sample are aware of ill effect of recession in different fields. (6) Effect on business sector
The impact of recession is comparatively more in business houses. This impact influences the job market. The sample respondents were asked to reveal their views the sectors receiving more of ill effects of recession
Table-17 Effect on business sector Preference Manufacturing sector Service sector All Total Frequency 3 13 9 25 % 12.00 52.00 36.00 100%
A look at the table indicates the sample realized impact in services sector followed all sector and manufacturing factor units. It is inferred that service and manufacturing units have been seriously effect by recession as expressed by sample. (7) Job seeking behavior preposition Table-18 Job seeking behavior of sample Jobs applied 0-10 11-25 26-50 50-100 Total Frequency 15 8 2 0 25 Percentage 60.00 32.00 8.00 0 100%
Data contained in table reveal that of the sample 60% had applied up to 10 organizations and 32% up to IT organizations. Of the sample 60% received interview calls up to 10 organizations followed by 20% who received calls from 11-20 organizations. The package was mostly within 15000 to 20000 as expressed by majority of the respondents. (8) Student placement
Further attempt was made to find out extent of placement of the student in their respective institutions which gave the following results. Table-19 Placement of Student Placement 10-20 20-40 40-60 60-80 Total Frequency 2 11 7 5 25 % 8.00 44.00 28.00 20.00 100.00
Findings reveal that about 44% of the institutions where students studied had placement followed by 28% up to 40 to 60% while none attained 100% placement (9) Planning to meet recession To over come the ill effects of recession, people normally plan in different ways, specifically business people and employees. To know the reaction of the students in this regard, the information were collected as shown below. Table-20
Means to over come recession Means to over come Developing core skills Developing communication skills Developing personality Frequency 11 10 4 25 Percentage 44.00 40.00 16.00 100%
Analysis reveals that 44% expressed to developed core skill, 40% communication skills while 16% stressed on personality development. However, these are opinions of the students who have yet to make entry into job. (10) Qualification Vs impact of recession: Table-21 Qualification Vs impact of recession Stream Graduate Post graduate Total Positive 9 2 11 Negative 14 14 Total 23 2 25
The impact of recession is shown in table above. The graduates have more negative views. An attempt was made to find out relation between qualification and perception about than the post graduates. A Look at the table revels that negative impact is more realized than positive impact. How ever, the relation between qualifications perception of recession is clearly marked in between graduate and postgraduate.
Chapter V SUGGESTION The job seekers should have some ideas in mind to as how to over come the ill effects of recession. To know this aspect, suggestions were secured and the results are shown below: Table-22 Suggestion Govt Effort for Subside Starting self business More industries Increase in Productivity Save form Wastage Analysis Frequency 3 2 4 5 2 Percentage 30.00 20.00 40.00 50.00 20.00
reveals that the students are opinion that increase in
productivity, establishment of industries, more of government subsidies and starting of own business and scientific management would help to overcome the ill effect of recession.
Chapter VII CERTIFICATE BY THE ORGANISATION
Chapter VIII SUMMARY AND CONCLUSION
The study impact on recession on men power recruitment in Bhubaneswar conducted the state capital of Orissa to take in 35 sample 10 being employees in different company and 25 job secure and various field the study was designed to investigate into impact of recession in general and job in particular the objectives like finding out pattern of recruitment , its effect of size of recruitment salary structure and remedial majors to overcome the ill effects of recession the study was divided into two parts one is dealing with employees of different organization and other with job seekers of different profession . To secure desirable information and interview schedule was developed is finalized after pre test .in many cases the response were secure personally and in some cases the field of question are collected to obtained relevant findings this structure methods like percentage % analysis and score analysis are adopted the result of the findings have been summarized as below. Part1-Employees reaction 1 All together 10 company executive were randomly selected to provide required information. They represented different companies including agro products, consultancy, land promotion, software, research marketing and other fields.
Most of the sample head experience 2-4 years followed by 5-7 years and 8-10 years all of them where engaged in private company.
3 4 5 6 7 8
It was reported that majority of the sample belongs to companies have been size of employees up to 20 and 26-50. For recruitment of employee’s experience, smartness, qualification are consider where as attitude is ignored. Effect of recession has been realized by all samples. In spite of recession the relation among the employees of the respective organization as found to be cordial. The effect of recession has been found reduction of budget and other activity of company. The impact of recession was noticed in selection procedure of the recruitment, personal interview, group discussion and other important areas.
The importance is giving to the recruitment the importance to giving technical ad over people general and managerial. The as such the rate of recruitment has been reduced effect on salary package.
To overcome the impact of recession suggestion like better performance in market oriented approach and team spirit were suggested.
Part2-job seeker Investigation relating to ill effective of recession among job seeker was studied in details. The summarized findings are as follows:
1 2 3 4
Most of the samples were in the group of 23-24 years & 25-26 Out of the sample 92% of the graduates and 80% of the postThe sample was composed of 28% technical and 44% of Carrier aim of them was job in bank, business, technical and social service in order of importance. However of the sample 40% had limited expression in job against 60% did not and all most all of them were in search of job.
years age. graduates. management professional.
The student sample expressed visible impact of recession on economic growth, employment and market. The effect is also realized in efficiency of professionals. The sample has preference for manufacturing sector, service sector ands other related fields.
The Job seeking behavior revels that they applied up to 25 organizations and most of the recessive calls form 10 organizations with package of 5 to 10 thousands. Most of them feel package offered by different companies is as per the expectations while placement, of the students in their respective organizations is up to 40% to 60%.
To overcome the effect of recession one has to get ready for job market. To get job development of core skill, communication and personality are important in order as expressed by the respondents.
Its suggestions to overcome ill effect are found to be government effort to subside, starting off own business, improving quality of
product and increasing software based companies in the area under investigation.
Conclusion This study on “Impact of Recession in manpower recruitment at Bhubaneswar” conduct in Orissa with sample consists executives of companies of job seekers lead to arrive at the following conclusions. 1. There has been serious impact in organization relating to recruitment, Selection procedure, and placement and salary structures. 2. The organizations dealings with various products have given emphasis for cordial relationship for
reduced manpower and increasing of efficiency. 3.
To overcome ill effected of recession, improvement in oriented approach, team sprit, government
efforts, increase of quality of product, starting of own business are some of the answers to the questions raised. However, the study being limited to few employees and job seekers, its validation needs intensive s analysis. The study beliefs that there are means and ways to overcome ill effect of recession provided constructive steps are taken.
APPENDICES-I Corporate Question 1. What is the type of company in which you are working in? Please tick in the box next to your answer. (i) Private limited. (ii) Government. (iii) Foreign. (iv) Any others. 2. What is the total employee strength of your organization? Please tick in the box next to your answer. (i) 0-25 (ii) 51-100 (iii) 501-1000 (iv) 26-50 (v) 101-500 (vi)1000+
3. What are the major products of your organization? 1______________________________________ 2______________________________________
3______________________________________ 4. What are the factors you give importance to, while recruiting the employees for your organization? Please tick in the box next to your answer. (i) Qualification. (ii) Experience. (iii) Attitude. (iv) Smartness. (v) Any other. 05. Do you feel that present recession has affected your organization? Please tick in the box next to your answer. A=Yes B=No If yes, then in what form?
How do you rate relation among employees in your organization? Please tick in the box next to your answer. (i) Very much cordial. (ii) Cordial. (iii) Manageable. (iv) Not cordial.
7. How has the recession affected your budget for expenses of recruitment? Please tick in the box next to your answer. (i)Reduced budget (ii)Increased budget (iii)No change in the budget 8. What is the specified procedure of selection of employees? Please tick in the box next to your answer. (i) Written test. (ii) Group discussion. (iii) Personal interview . (iv) others. (v) All 9. Have you adopted any change in your recruitment process due to recession? Please tick in the box next to your answer. Yes If yes, state what are they? 1. 2. 3. 10. How do you rate the satisfaction level of employees working in your organization? No
Please tick in the box next to your answer. (i) Very much satisfied. (ii) Satisfied. (iii) Somewhat satisfied. (iv) Not satisfied. (v) Not at all satisfied. 11. Please indicate your agreement or disagreement to the following statements regarding the impact of present recession on your organization. For each statement given below, please circle the appropriate number to indicate whether you 1= strongly agree, 2= Agree, 3= Neutral, 4= Disagree, 5= strongly disagree. Attributes Recession has reduced size of your business. Recession has reduced the profit of your organization. Recession has reduced the customers of your organization. Recession has reduced the benefit of the employees of your organization. Strongly Agree agree 1 2 1 2 Neutral Disagree Strongly disagree 3 4 5 3 4 5
Recession has reduced the number of new recruitment of the employees to your organization. Recession has reduced the number of attrition of the employees from your organization.
12. Which field you are giving importance to, during this period of recession for new recruitment in your organization? Please tick in the box next to your answer. (i)Technical (ii)General (iii)Management 13. How the number of new recruitments has changed in your organization this year as compared to previous year? Please tick in the box next to your answer. (i)Increased (ii)Decreased
(iii)Almost same 14. How is the compensation package of the new entrants going to change in the recent future for your organization? Please tick in the box next to your answer. (i)Positively (ii)Negatively (iii)No Change
15. You are HR Manager of this esteem company. Please suggest the job aspirants, what remedial measures can be taken to overcome bad effects of recession?
APPENDICES-II Student (Part One) 1. What is your highest level of qualification? Please tick in the box next to your answer. (i)Matriculation (ii) Intermediate (iii)Graduate (iv)Graduate (v) Doctoral 2. What was your stream of education at highest level? Please tick in the box next to your answer. (i)General (ii) Technical (iii) Managerial
3. Do you have any extra qualification apart from your main stream education?
4. Which age group do you belong to? Please tick in the box next to your answer. (i) 20-25 (ii) 25-30 (iii) 30-40 (iv) 40+
5. What is your career aim?
6. Do you have any work experience in the corporate world? Please tick in the box next to your answer. (i)Yes If yes please specify it (ii) No : Sector/ Industry – : Years of Experience – 7. Are you in search of a job? Please tick in the box next to your answer (i)Yes (ii) No
Student (Part Two) 1. What is your opinion about recession?
2. How is the current recession affecting your career? Please tick in the box next to your answer. (i)Positively affecting (ii)Negatively affecting (iii)Not at all affecting 3. Which sector do you belong to or planning to enter into in this recession period? Please tick in the box next to your answer. (i)Manufacturing sector (ii)Services sector (iii)All (iv)None 4. Do you feel the impact of recession on the industry/ sector you are in or planning to enter? Please tick in the box next to your answer. (i)Yes (ii) No
5. How many organizations you have applied for within last 12 months? Please tick in the box next to your answer. (i)0-10 (ii)10-25 (iii)25-50 (iv)50+
6. How many interview calls you have received? Please tick in the box next to your answer. (I) 0-10 (ii) 10-25 (iii) 25-50
7. What was the average package offered to you in last 12 months? Please tick in the box next to your answer. (i) 5000-10000 (iv) 15000+ 8. Was the salary offered to you in last 12 months up to your expectation? Please tick in the box next to your answer. (i)Yes (ii) No (iii) Don’t know (ii) 10000-15000 (iii) 15000-25000
9. From your institute what is the Percentage of students, already been placed in this session/ year? (For graduates and post graduates passing in the year 2009 only) Please tick in the box next to your answer. (i) 10-20 (v) 80-100 10. Which areas you are planning to develop to encounter the effects of the current recession? Please tick in the box next to your answer. (i)Developing Core skills (ii)Developing Communication skills (iii)Developing personality (ii) 20-40 (iii) 40-60 (Iv) 60-80
11. Please suggest ways and means to overcome ill effects of recession?