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Chapter I

Introduction and design of the study

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1.1 Industry s Introduction

India's telecommunication network is the second largest in the world by number of telephone users (both fixed and
mobile phone) with 1.183 billion subscribers as on 31 May 2019. [2] It has one of the lowest call tariffs in the world
enabled by mega telecom operators and hyper-competition among them. As on 31 July 2018, India has the world's
second-largest Internet user-base with 460.24 million broadband internet subscribers in the country. As of 31
December 2018, India had a population of 130 crore people (1.3 billion), 123 crore (1.23 billion) Aadhaar digital
biometric identity cards, 121 crore (1.21 billion) mobile phones, 44.6 crore (446 million) smartphones, 56 crore (560
million or 43% of total population) internet users up from 481 million people (35% of the country's total population) in
December 2017, and 51 per cent growth in e-commerce.
Major sectors of the Indian telecommunication industry are telephone, internet and television broadcast industry in the
country which is in an ongoing process of transforming into next generation network, employs an extensive system of
modern network elements such as digital telephone exchanges, mobile switching centres, media
gateways and signalling gateways at the core, interconnected by a wide variety of transmission systems using fibre-
optics or Microwave radio relay networks. The access network, which connects the subscriber to the core, is highly
diversified with different copper-pair, optic-fibre and wireless technologies. DTH, a relatively new broadcasting
technology has attained significant popularity in the Television segment. The introduction of private FM has given a
fillip to the radio broadcasting in India. Telecommunication in India has greatly been supported by the INSAT system
of the country, one of the largest domestic satellite systems in the world. India possesses a diversified communications
system, which links all parts of the country by telephone, Internet, radio, television and satellite
Indian telecom industry underwent a high pace of market liberalisation and growth since the 1990s and now has
become the world's most competitive and one of the fastest growing telecom markets. The Industry has grown over
twenty times in just ten years, from under 37 million subscribers in the year 2001 to over 846 million subscribers in the
year 2011. India has the world's second-largest mobile phone user base with over 1157.04 million users as of July 2018
Telecommunication has supported the socioeconomic development of India and has played a significant role to narrow
down the rural-urban digital divide to some extent. It also has helped to increase the transparency of governance with
the introduction of e-governance in India. The government has pragmatically used modern telecommunication
facilities to deliver mass education programmes for the rural folk of India
According to London-based telecom trade body GSMA, the telecom sector accounted for 6.5% of India's GDP in
2015, or about ₹9 lakh crore (US$130 billion), and supported direct employment for 2.2 million people in the country.
GSMA estimates that the Indian telecom sector will contribute ₹14.5 lakh crore (US$210 billion) to the economy and
support 3 million direct jobs and 2 million indirect jobs by 2020.

A microwave tower for short distance (~50 km) communication

Telecommunications in India began with the introduction of the telegraph. The Indian postal and telecom sectors are
one of the worlds oldest. In 1850, the first experimental electric telegraph line was started
between Calcutta and Diamond Harbour. In 1851, it was opened for the use of the British East India Company. The
Posts and Telegraphs department occupied a small corner of the Public Works Department, at that time.
The construction of 4,000 miles (6,400 km) of telegraph lines was started in November 1853. These connected Kolkata
(then Calcutta) and Peshawar in the north; Agra, Mumbai (then Bombay) through Sindwa Ghats, and Chennai (then
Madras) in the south; Ootacamund and Bangalore. William O'Shaughnessy, who pioneered the telegraph and telephone
in India, belonged to the Public Works Department, and worked towards the development of telecom throughout this
period. A separate department was opened in 1854 when telegraph facilities were opened to the public.
In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-Indian Telephone
Company Ltd. approached the Government of India to establish telephone exchange in India. The permission was
refused on the grounds that the establishment of telephones was a Government monopoly and that the Government
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itself would undertake the work. In 1881, the Government later reversed its earlier decision and a licence was granted
to the Oriental Telephone Company Limited of England for opening telephone exchanges
at Calcutta, Bombay, Madras and Ahmedabad and the first formal telephone service was established in the country On
28 January 1882, Major E. Baring, Member of the Governor General of India's Council declared open the Telephone
Exchanges in Calcutta, Bombay and Madras. The exchange in Calcutta named the "Central Exchange" had a total of
93 subscribers in its early stage. Later that year, Bombay also witnessed the opening of a telephone exchange.

Indian telegraph receipt 1912 (front top and back bottom) with additional labels.

 Pre-1902 – Cable telegraph.

 1902 – First wireless telegraph station established between Sagar Island and Sandhead.

 1907 – First Central Battery of telephones introduced in Kanpur.

 1913–1914 – First Automatic Exchange installed in Shimla.

 1927 – Radio-telegraph system between the UK and India, with Imperial Wireless Chain beam stations
at Khadki and Daund. Inaugurated by Lord Irwin on 23 July by exchanging greetings with King George V.

 1933 – Radiotelephone system inaugurated between the UK and India.

 1947 - First Electronics & Telecommunications Engineering department started in India at the Government
Engineering College, Jabalpur.

 1953 – 12 channel carrier system introduced.

 1960 – First subscriber trunk dialling route commissioned between Lucknow and Kanpur.[citation needed]

 1975 – First PCM system commissioned between Mumbai City and Andheri telephone exchanges.

 1976 – First digital microwave junction.

 1979 – First optical fibre system for local junction commissioned at Pune.

 1980 – First satellite earth station for domestic communications established at Sikandarabad, U.P..

 1983 – First analogue Stored Programme Control exchange for trunk lines commissioned at Mumbai.

 1984 – C-DOT established for indigenous development and production of digital exchanges.

 1995 – First mobile telephone service started on non-commercial basis on 15 August 1995 in Delhi.

 1995 – Internet Introduced in India starting with Laxmi Nagar, Delhi 15 August 1995 [15]
Development of Broadcasting: Radio broadcasting was initiated in 1927 but became state responsibility only in 1930.
In 1937 it was given the name All India Radio and since 1957 it has been called Akashvani. Limited duration of
television programming began in 1959, and complete broadcasting followed in 1965. The Ministry of Information and
Broadcasting owned and maintained the audio-visual apparatus—including the television channel Doordarshan—in
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the country prior to the economic reforms of 1991. In 1997, an autonomous body was established in the name of Prasar
Bharti to take care of the public service broadcasting under the Prasar Bharti Act. All India Radio and Doordarshan,
which earlier were working as media units under the Ministry of I&B became constituents of the body. [10]
Pre-liberalisation statistics: While all the major cities and towns in the country were linked with telephones during
the British period, the total number of telephones in 1948 numbered only around 80,000. Post independence, growth
remained slow because the telephone was seen more as a status symbol rather than being an instrument of utility. The
number of telephones grew leisurely to 980,000 in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year
economic reforms were initiated in the country.

Liberalisation and privatisation

A mobile phone tower in Leh, Ladakh, India, surrounded by Buddhist prayer flags

Liberalisation of Indian telecommunication in industry started in 1981 when Prime Minister Indira Gandhi signed
contracts with Alcatel CIT of France to merge with the state owned Telecom Company (ITI), in an effort to set up
5,000,000 lines per year. But soon the policy was let down because of political opposition. [17] Attempts to liberalise the
telecommunication industry were continued by the following government under the prime-minister-ship of Rajiv
Gandhi. He invited Sam Pitroda, a US-based Non-resident Indian NRI and a former Rockwell International executive
to set up a Centre for Development of Telematics(C-DOT) which manufactured electronic telephone exchanges in
India for the first time.[18] Sam Pitroda had a significant role as a consultant and adviser in the development of
telecommunication in India
In 1985, the Department of Telecom(DoT) was separated from Indian Post & Telecommunication Department. DoT
was responsible for telecom services in entire country until 1986 when Mahanagar Telephone Nigam Limited (MTNL)
and Videsh Sanchar Nigam Limited (VSNL) were carved out of DoT to run the telecom services of metro cities
(Delhi and Mumbai) and international long distance operations respectively.
The demand for telephones was ever increasing and in the 1990s Indian government was under increasing pressure to
open up the telecom sector for private investment as a part of Liberalisation-Privatisation-Globalisation policies that
the government had to accept to overcome the severe fiscal crisis and resultant balance of payments issue in 1991.
Consequently, private investment in the sector of Value Added Services (VAS) was allowed and cellular telecom sector
were opened up for competition from private investments. It was during this period that the Narsimha Rao-led
government introduced the National Telecommunications policy (NTP) in 1994 which brought changes in the
following areas: ownership, service and regulation of telecommunications infrastructure. The policy introduced the
concept of telecommunication for all and its vision was to expand the telecommunication facilities to all the villages in
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India.[20] Liberalisation in the basic telecom sector was also envisaged in this policy. [21] They were also successful in
establishing joint ventures between state owned telecom companies and international players. Foreign firms were
eligible to 49% of the total stake. The multi-nationals were just involved in technology transfer, and not policy making.
[17]

During this period, the World Bank and ITU had advised the Indian Government to liberalise long distance services to
release the monopoly of the state owned DoT and VSNL and to enable competition in the long distance carrier
business which would help reduce tariff's and better the economy of the country. The Rao run government instead
liberalised the local services, taking the opposite political parties into confidence and assuring foreign involvement in
the long distance business after 5 years. The country was divided into 20 telecommunication circles for basic
telephony and 18 circles for mobile services. These circles were divided into category A, B and C depending on the
value of the revenue in each circle. The government threw open the bids to one private company per circle along with
government owned DoT per circle. For cellular service two service providers were allowed per circle and a 15 years
licence was given to each provider. During all these improvements, the government did face oppositions from ITI,
DoT, MTNL, VSNL and other labour unions, but they managed to keep away from all the hurdles.
In 1997, the government set up TRAI (Telecom Regulatory Authority of India) which reduced the interference of
Government in deciding tariffs and policy making. The political powers changed in 1999 and the new government
under the leadership of Atal Bihari Vajpayee was more pro-reforms and introduced better liberalisation policies. In
2000, the Vajpayee government constituted the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) through
an amendment of the TRAI Act, 1997. [22][23] The primary objective of TDSAT's establishment was to release TRAI from
adjudicatory and dispute settlement functions in order to strengthen the regulatory framework. Any dispute involving
parties like licensor, licensee, service provider and consumers are resolved by TDSAT. Moreover, any direction, order
or decision of TRAI can be challenged by appealing in TDSAT The government corporatised the operations wing of
DoT on 1 October 2000 and named it as Department of Telecommunication Services (DTS) which was later named
as Bharat Sanchar Nigam Limited (BSNL). The proposal of raising the stake of foreign investors from 49% to 74%
was rejected by the opposite political parties and leftist thinkers. Domestic business groups wanted the government to
privatise VSNL. Finally in April 2002, the government decided to cut its stake of 53% to 26% in VSNL and to throw it
open for sale to private enterprises. TATA finally took 25% stake in VSNL.
This was a gateway to many foreign investors to get entry into the Indian telecom markets. After March 2000, the
government became more liberal in making policies and issuing licences to private operators. The government further
reduced licence fees for [cellular service providers and increased the allowable stake to 74% for foreign companies.
Because of all these factors, the service fees finally reduced and the call costs were cut greatly enabling every common
middle-class family in India to afford a cell phone. Nearly 32 million handsets were sold in India. The data reveals the
real potential for growth of the Indian mobile market. [ Many private operators, such as Reliance
Communications, Jio, Tata Indicom, Vodafone, Loop Mobile, Airtel, Idea etc., successfully entered the high potential
Indian telecom market. In the initial 5–6 years the average monthly subscribers additions were around 0.05 to 0.1
million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after a number
of proactive initiatives taken by regulators and licensors, the total number of mobile subscribers has increased rapidly
to over 929 million subscribers as of May 2012.
In March 2008, the total GSM and CDMA mobile subscriber base in the country was 375 million, which represented a
nearly 50% growth when compared with previous year. [26] As the unbranded Chinese cell phones which do not
have International Mobile Equipment Identity (IMEI) numbers pose a serious security risk to the country, Mobile
network operators therefore suspended the usage of around 30 million mobile phones (about 8% of all mobiles in the
country) by 30 April 2009. Phones without valid IMEI cannot be connected to cellular operators
India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division
multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of the companies
also provide the WLL service. The mobile tariffs in India have also become the lowest in the world. A new mobile
connection can be activated with a monthly commitment of US$0.15 only.
On 2 February 2012 the Supreme Court ruled on petitions filed by Subramanian Swamy and the Centre for Public
Interest Litigation (CPIL) represented by Prashant Bhushan, challenging the 2008 allotment of 2G licenses, cancelling
all 122 spectrum licences granted during A. Raja (Minister of Communications & IT from 2007 to 2009), the primary
official accused's term as communications minister.[28] and described the allocation of 2G spectrum as "unconstitutional
6|Page

and arbitrary". The bench of GS Singhvi and Asok Kumar Ganguly imposed a fine of ₹50 million (US$720,000) on
Unitech Wireless, Swan Telecom and Tata Teleservices and a ₹5 million (US$72,000) fine on Loop Telecom, S Tel,
Allianz Infratech and Sistema Shyam Tele Services According to the ruling the then granted licences would remain in
place for four months, after which time the government would reissue the licences. [31]

Consolidation
Post starting of the commercial operation of Reliance Jio in September 2016, the telecom market saw a huge change in
terms of falling tariff rates and reduction of data charges, which changed the economics for some of the telecom
players. This resulted in exit of many smaller players from the market. Players like Videocon and Systema sold their
spectrum under spectrum trading agreements to Airtel and RCOM respectively in Q4 2016.
On 23 February 2017, Telenor India announced that Bharti Airtel will takeover all its business and assets in India and
deal will be completed in 12 months timeframe. ] On 14 May 2018, Department of Telecom approved the merger
of Telenor India with Bharti Airtel paving the way for final commercial closing of the merger between the two
companiesTelenor India has been acquired by Airtel almost without any cost.
On 12 October 2017, Bharti Airtel announced that it would acquire the consumer mobile businesses of Tata
Teleservices Ltd (TTSL) and Tata Teleservices Maharastra Ltd (TTML) in a debt-free cash-free deal. The deal was
essentially free for Airtel which incurred TTSL's unpaid spectrum payment liability. TTSL will continue to operate its
enterprise, fixed line and broadband businesses and its stake in tower company Viom Networks. [34][35][36] The consumer
mobile businesses of Tata Docomo, Tata Teleservices (TTSL) and Tata Teleservices Maharashtra Limited (TTML)
have been merged into Bharti Airtel from 1 July 2019
Reliance Communications had to shut down its 2G and 3G services including all voice services and only offer 4G data
services from 29 December 2017, as a result of debt and a failed merger with Aircel.Surprisingly, the shut down was
shortly after completion of acquisition of MTS India on 31 October 2017.[In February 2019, the company filed for
bankruptcy as it was unable to sell assets to repay its debt. [44] It has an estimated debt of ₹ 57,383 crore against assets
worth ₹18,000 crore.[45][46]
Aircel shut down its operations in unprofitable circles including, Gujarat, Maharashtra, Haryana, Himachal Pradesh,
Madhya Pradesh and Uttar Pradesh (West) from 30 January 2018. [47] Aircel along with its units - Aircel Cellular and
Dishnet Wireless - on 1 March 2018, filed for bankruptcy in the National Companies Law Tribunal (NCLT) in Mumbai
due to huge competition and high levels of debt.
Vodafone and Idea Cellular completed their merger on 31 August 2018, and the merged entity is renamed to Vodafone
Idea Limited.[48] The merger created the largest telecom company in India by subscribers and by revenue, [49] and the
second largest mobile network in terms of number of subscribers in the world. Under the terms of the deal,
the Vodafone Group holds a 45.1% stake in the combined entity, the Aditya Birla Group holds 26% and the remaining
shares will be held by the public.[50] However, even after the merger both the brands have been continued to carry their
own independent brands.[51]
With all this consolidation, the Indian Mobile market has turned into four players market with Jio as the number one
player with revenue market share of 31% , Vodafone Idea Limited in second position with revenue market share of
30% and Airtel India with revenue market share of 28%. The government operator BSNL/MTNL is in the distant 4th
position with approx market share of 11%[52]
Private-sector and two state-run businesses dominate the telephony segment. Most companies were formed by a recent
revolution and restructuring launched within a decade, directed by Ministry of Communications and IT, Department of
Telecommunications and Minister of Finance. Since then, most companies gained 2G, 3G and 4G licences and
engaged fixed-line, mobile and internet business in India. On landlines, intra-circle calls are considered local calls
while inter-circle are considered long distance calls. Foreign Direct Investment policy which increased the foreign
ownership cap from 49% to 100%. The Government is working to integrate the whole country in one telecom circle.
For long distance calls, the area code prefixed with a zero is dialled first which is then followed by the number (i.e., to
call Delhi, 011 would be dialled first followed by the phone number). For international calls, "00" must be dialled first
followed by the country code, area code and local phone number. The country code for India is 91. Several
international fibre-optic links include those to Japan, South Korea, Hong Kong, Russia, and Germany. Some major
7|Page

telecom operators in India include the privately owned companies like Vodafone Idea, Airtel, and Reliance Jio and the
state-owned companies- BSNL and MTNL.

Landline
Before the New Telecom Policy was announced in 1999, only the Government-owned BSNL and MTNL were allowed
to provide land-line phone services through copper wire in India with MTNL operating
in Delhi and Mumbai and BSNL servicing all other areas of the country. Due to the rapid growth of the cellular phone
industry in India, landlines are facing stiff competition from cellular operators, with the number of wireline subscribers
fell from 37.90 million in December 2008 to 23 million in December 2017. This has forced land-line service providers
to become more efficient and improve their quality of service. As of July 2018, India has over 22 million wireline
customers.[2]

Mobile telephony

Typical signboards of STD booths (kiosks from where STD calls can be made) and internet kiosks in India

In August 1995, then Chief Minister of West Bengal, Jyoti Basu made the first mobile phone call in India to then
Union Telecom Minister Sukhram.[54] Sixteen years later 4G services were launched in Kolkata in 2012
With a subscriber base of more than 1,179.32 million (as of July 2018), [56] the mobile telecommunications system in
India is the second largest in the world and it was thrown open to private players in the 1990s. GSM was comfortably
maintaining its position as the dominant mobile technology with 80% of the mobile subscriber market, but CDMA
seemed to have stabilised its market share at 20% for the time being.
The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several
private players run local and long distance telephone services. Competition, especially after entry of Reliance Jio, has
caused prices to drop across India, which are already one of the cheapest in the world. The rates are supposed to go
down further with new measures to be taken by the Information Ministry
In September 2004, the number of mobile phone connections crossed the number of fixed-line connections and
presently dwarfs the wireline segment substantially. The mobile subscriber base has grown from 5 million subscribers
in 2001 to over 1,179.32 million subscribers as of July 2018. India primarily follows the GSM mobile system, in the
900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players are Vodafone
Idea, Airtel, Jio, and BSNL/MTNL. International roaming agreements exist between most operators and many foreign
carriers. The government allowed Mobile number portability (MNP) which enables mobile telephone users to retain
their mobile telephone numbers when changing from one mobile network operator to another. [59] In
2014, Trivandrum became the first city in India to cross the mobile penetration milestone of 100 mobile connections
per 100 people. In 2015 three more cities from Kerala, Kollam, Kochi and Kottayam crossed the 100 mark. In 2017
many other major cities in the country like Chennai, Mysore, Mangalore, Bangalore, Hyderabad, etc. also crossed the
milestone. Currently Trivandrum tops the Indian cities with a mobile penetration of 168.4 followed by Kollam 143.2
and Kochi 141.7.
Frequency bands

As of 2016, India has deployed telecom operations in a total of 8 radio frequency bands

India is divided into 22 telecom circles:

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Landline subscriber base in Wireless subscriber base in Teledensity

Telecom circle
million (December 2017)[61] million (December 2017)[61] (September 2014)[62]

Andhra Pradesh &

1.52 84.31 81.06
Telangana

Assam 0.14 22.60 50.41

Bihar & Jharkhand 0.27 84.28 47.66

Delhi 3.22 55.54 232.22

Gujarat & Daman & Diu 1.29 70.59 93.34

Haryana 0.30 25.46 80.31

Himachal Pradesh 0.12 10.57 109.56

Jammu and Kashmir 0.11 13.12 69.98

Karnataka 2.25 67.20 94.20

Kerala & Lakshadweep 1.99 41.01 95.96

Kolkata 0.81 29.06 73.0

Madhya Pradesh &

0.97 73.10 57.04
Chhattisgarh

Maharashtra & Goa

1.76 94.38 92.20 *
(including Mumbai )
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The history of the Internet in India started with launch of services by VSNL on 15 August 1995.[64] They were able to
add about 10,000 Internet users within 6 months However, for the next 10 years the Internet experience in the country
remained less attractive with narrow-band connections having speeds less than 56 kbit/s (dial-up). In 2004, the
government formulated its broadband policy which defined broadband as "an always-on Internet connection with
download speed of 256 kbit/s or above." [66] From 2005 onward the growth of the broadband sector in the country
accelerated, but remained below the growth estimates of the government and related agencies due to resource issues in
last-mile access which were predominantly wired-line technologies. This bottleneck was removed in 2010 when the
government auctioned 3G spectrum followed by an equally high-profile auction of 4G spectrum that set the scene for a
competitive and invigorated wireless broadband market. Now Internet access in India is provided by both public and
private companies using a variety of technologies and media including dial-up (PSTN), xDSL, coaxial cable, Ethernet,
FTTH, ISDN, HSDPA (3G), 4G, WiFi, WiMAX, etc. at a wide range of speeds and costs.
According to the Internet And Mobile Association of India (IAMAI), the Internet user base in the country stood at 190
million at the end of June, 2013, which rose to 378.10 million in January 2018. Cumulative Annual Growth rate
(CAGR) of broadband during the five-year period between 2005 and 2010 was about 117 per cent
There were 204 Internet Service Providers (ISPs) offering broadband services in India as of 31 December 2017. As of
January 2018, the top five ISPs in terms subscriber base were Reliance Jio (168.39 million), Bharti Airtel (75.01
million), Vodafone (54.83 million), Idea Cellular (37.33 million) and BSNL (21.81 millionIn 2009, about 37 per cent
of the users access the Internet from cyber cafes, 30 per cent from an office, and 23 per cent from home. However, the
number of mobile Internet users increased rapidly from 2009 on and there were about 359.80 million mobile users at
the end of January 2018, with a majority using 4G mobile networks.
One of the major issues facing the Internet segment in India is the lower average bandwidth of broadband connections
compared to that of developed countries. According to 2007 statistics, the average download speed in India hovered at
about 40 KB per second (256 Kbit/s), the minimum speed set by TRAI, whereas the international average was 5.6
Mbit/s during the same period. In order to attend this infrastructure issue the government declared 2007 as "the year of
broadband". To compete with international standards of defining broadband speed the Indian Government has taken
the aggressive step of proposing a $13 billion national broadband network to connect all cities, towns and villages with
a population of more than 500 in two phases targeted for completion by 2012 and 2013. The network was supposed to
provide speeds up to 10 Mbit/s in 63 metropolitan areas and 4 Mbit/s in an additional 352 cities. In February 2018, the
average broadband speed of fixed line connection in India was 20.72 mbps, which is less than the global average
download speed of 42.71 mbps.[ In terms of mobile internet speed, India performed quite poorly, with average speed of
9.01 mbps when compared with global average mobile broadband speed was 22.16 mbps.
As of December 2017, according to Internet and Mobile Association of India, the Internet penetration rate in India is
one of the lowest in the world and only accounts for 35% of the population compared to the global average internet
penetration is over 54.4%.Another issue is the digital divide where growth is biased in favour of urban areas;
according to December 2017 statistics, internet penetration in urban India was 64.84%, whereas internet penetration in
rural India is only 20.26%. Regulators have tried to boost the growth of broadband in rural areas by promoting higher
investment in rural infrastructure and establishing subsidised tariffs for rural subscribers under the Universal service
obligation scheme of the Indian government.
A
Historically, the role of telecommunication has evolved from that of plain information exchange to a multi-service
field, with Value Added Services (VAS) integrated with various discrete networks like PSTN, PLMN, Internet
Backbone etc. However, with decreasing ARPU and increasing demand for VAS has become a compelling reason for
the service providers to think of the convergence of these parallel networks into a single core network with service
layers separated from network layer.[88] Next-generation networking is such a convergence concept which according
to ITU-T is:
A next-generation network (NGN) is a packet-based network which can provide services including Telecommunication
Services and able to make use of multiple broadband, quality of Service-enabled transport technologies and in which
service-related functions are independent from underlying transport-related technologies. It offers unrestricted access
by users to different service providers. It supports generalised mobility which will allow consistent and ubiquitous
provision of services to users.
10 | P a g e

Access network: The user can connect to the IP-core of NGN in various ways, most of which use the standard Internet
Protocol (IP). User terminals such as mobile phones, personal digital assistants (PDAs) and computers can register
directly on NGN-core, even when they are roaming in another network or country. The only requirement is that they
can use IP and Session Initiation Protocol (SIP). Fixed access (e.g., digital subscriber line (DSL), cable
modems, Ethernet), mobile access (e.g. W-CDMA, CDMA2000, GSM, GPRS) and wireless access
(e.g.WLAN, WiMAX) are all supported. Other phone systems like plain old telephone service and non-
compatible VoIP systems, are supported through gateways. With the deployment of the NGN, users may subscribe to
many simultaneous access-providers providing telephony, internet or entertainment services. This may provide end-
users with virtually unlimited options to choose between service providers for these services in NGN environment. [
The hyper-competition in telecom market, which was effectively caused by the introduction of Universal Access
Service (UAS) licence in 2003 became much tougher after 3G and 4G competitive auction. About 670,000 route-
kilometer (419,000-mile) of optical fibres has been laid in India by the major operators, including in the financially
nonviable rural areas and the process continues.Keeping in mind the viability of providing services in rural areas, the
government of India also took a proactive role to promote the NGN implementation in the country; an expert
committee called NGN eCO was constituted in order to deliberate on the licensing, interconnection and Quality of
Service (QoS) issues related to NGN and it submitted its report on 24 August 2007. Telecom operators found the NGN
model advantageous, but huge investment requirements have prompted them to adopt a multi-phase migration and they
have already started the migration process to NGN with the implementation of IP-based core
LIRNEasia's Telecommunications Regulatory Environment (TRE) index, which summarises stakeholders' perception
on certain TRE dimensions, provides insight into how conducive the environment is for further development and
progress. The most recent survey was conducted in July 2008 in eight Asian countries, including Bangladesh, India,
Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the Philippines. The tool measured seven dimensions: i)
market entry; ii) access to scarce resources; iii) interconnection; iv) tariff regulation; v) anti-competitive practices; and
vi) universal services; vii) quality of service, for the fixed, mobile and broadband sectors.
The results for India, point out to the fact that the stakeholders perceive the TRE to be most conducive for the mobile
sector followed by fixed and then broadband. Other than for Access to ScarceResources the fixed sector lags behind
the mobile sector. The fixed and mobile sectors have the highest scores for Tariff Regulation. Market entry also scores
well for the mobile sector as competition is well entrenched with most of the circles with 4–5 mobile service providers.
The broadband sector has the lowest score in the aggregate. The low penetration of broadband of mere 3.87 against the
policy objective of 9 million at the end of 2007 clearly indicates that the regulatory environment is not very conducive.
In 2013 the home ministry stated that legislation must ensure that law enforcement agencies are empowered to
intercept communications.
In India, electromagnetic spectrum, being a scarce resource for wireless communication, is auctioned by the
Government of India to telecom companies for use. As an example of its value, in 2010, 20 MHz of 3G spectrum
was auctioned for ₹677 billion (US$9.8 billion). This part of the spectrum is allocated for terrestrial communication
(cell phones). However, in January 2005, Antrix Corporation (commercial arm of ISRO) signed an agreement with
Devas Multimedia (a private company formed by former ISRO employees and venture capitalists from USA) for lease
of S band transponders (amounting to 70 MHz of spectrum) on two ISRO satellites (GSAT 6 and GSAT 6A) for a price
of ₹14 billion (US$200 million), to be paid over a period of 12 years. The spectrum used in these satellites (2500 MHz
and above) is allocated by the International Telecommunication Union specifically for satellite-based communication
in India. Hypothetically, if the spectrum allocation is changed for utilisation for terrestrial transmission and if this
70 MHz of spectrum were sold at the 2010 auction price of the 3G spectrum, its value would have been over ₹2,000
billion (US$29 billion). This was a hypothetical situation. However, the Comptroller and Auditor General of
India considered this hypothetical situation and estimated the difference between the prices as a loss to the Indian
Government.
There were lapses on implementing Government of India procedures. Antrix/ISRO had allocated the capacity of the
above two satellites to Devas Multimedia on an exclusive basis, while rules said it should always be non-exclusive.
The Cabinet was misinformed in November 2005 that several service providers were interested in using satellite
capacity, while the Devas deal was already signed. Also, the Space Commission was kept in the dark while taking
approval for the second satellite (its cost was diluted so that Cabinet approval was not needed). ISRO committed to
11 | P a g e

spending ₹7.66 billion (US$110 million) of public money on building, launching, and operating two satellites that
were leased out for Devas.
In late 2009, some ISRO insiders exposed information about the Devas-Antrix dealand the ensuing investigations
resulted in the deal being annulled. G. Madhavan Nair (ISRO Chairperson when the agreement was signed) was barred
from holding any post under the Department of Space. Some former scientists were found guilty of "acts of
commission" or "acts of omission". Devas and Deutsche Telekom demanded US$2 billion and US$1 billion,
respectively, in damages. Government of India's Department of Revenue and Ministry of Corporate Affairs initiated an
inquiry into Devas shareholding.
The Central Bureau of Investigation concluded investigations into the Antrix-Devas scam and registered a case against
the accused in the Antrix-Devas deal under Section 120-B, besides Section 420 of IPC and Section 13(2) read with
13(1)(d) of PC Act, 1988 on 18 March 2015 against the then Executive Director of Antrix Corporation, two officials of
USA-based company, Bangalore based private multimedia company, and other unknown officials of Antrix
Corporation or Department of Space.
Devas Multimedia started arbitration proceedings against Antrix in June 2011. In September 2015, the International
Court of Arbitration of the International Chamber of Commerce ruled in favour of Devas, and directed Antrix to pay
US$672 million (Rs 44.35 billion) in damages to Devas Antrix opposed the Devas plea for tribunal award in the Delhi
High Court.
12 | P a g e

INTRODUCTION OF TOPIC

Recruitmentandselectionaretwoofthemostimportantfunctionsofpersonnelmanagement.
Recruitmentprecedes selectionandhelpsinselectingarightcandidate.

Recruitmentisaprocesstodiscoverthesourcesofmanpowertomeettherequirementofthe
staffingscheduleandtoemployeffectivemeasuresforattractingthatmanpowerinadequate numbers
tofacilitateeffectiveselectionofefficientpersonnel.

Staffingisonebasicfunction ofmanagement.Allmanagershaveresponsibility of
staffingfunctionby selecting the chiefexecutiveandeven theforemen andsupervisorshavea
staffingresponsibility when theyselecttherankandfileworkers.However,thepersonnel manager andhis
personneldepartmentaremainlyconcernedwiththestaffingfunction.

Every organisationneedstolookafterrecruitmentandselectionin theinitialperiodand

thereafterasand when additional manpowerisrequiredduetoexpansion anddevelopmentof business
activities.

“Rightpersonfortherightjob”isthebasicprincipleinrecruitmentandselection.Ever organisation
shouldgiveattentiontotheselectionofitsmanpower,especiallyitsmanagers.The
operativemanpowerisequallyimportantandessentialfortheorderly workingofan enterprise. Every
businessorganisation/unitneedsmanpowerforcarrying differentbusinessactivities smoothly and
efficiently andfor this recruitmentandselectionof suitablecandidatesare essential.Human
resourcemanagementin an organisationwillnotbepossibleifunsuitable persons
areselectedandemploymentinabusinessunit.
2.RECRUITMENT

2.1Meaning
Recruitmentmeanstoestimatetheavailablevacanciesandtomakesuitablearrangementsfor
theirselectionandappointment.Recruitmentis understoodas theprocess of searchingforand
obtainingapplicants forthejobs,fromamongwhomtherightpeoplecanbeselected.

Aformal definitionstates,“Itistheprocessof finding andattractingcapableapplicants forthe

employment.Theprocessbeginswhennewrecruitsaresoughtandendswhen their
applicantsaresubmitted.Theresultisapool ofapplicantsfrom whichnewemployeesare
selected”.Inthis,theavailablevacanciesaregivenwidepublicityandsuitablecandidatesare
encouragedtosubmitapplicationssoastohaveapool ofeligiblecandidatesforscientific selection.

Inrecruitment,informationiscollectedfrominterestedcandidates.Forthisdifferentsource suchas
newspaperadvertisement,employmentexchanges,internalpromotion,etc. areused.

In therecruitment,apool ofeligibleandinterestedcandidatesiscreatedforselectionofmost suitable

candidates. Recruitment represents the firstcontact that a company makes with potentialemployees

Definition:
13 | P a g e

AccordingtoEDWINFLIPPO, “Recruitmentistheprocessof searchingforprospective employees

andstimulatingthemtoapplyforjobsintheorganization.”
1.1Needforrecruitment
Theneedforrecruitmentmaybeduetothefollowingreasons /situation:

Vacanciesduetopromotions,transfer,retirement,termination,permanentdisability,death and
labourturnover.

Creation of new vacancies due to the growth, expansion and diversification of business activities
ofanenterprise.Inaddition,newvacancies arepossibleduetojobspecification.

PurposeandimportanceofRecruitment:

Determinethepresentandfuturerequirementsoftheorganizationonconjunctionwith its personnel-

planningandjobanalysis activities.

Increasethepoolofjobcandidatesatminimumcost.

Helpincreasethesuccess rateoftheselectionprocessbyreducingthenumberofvisibly
underqualifiedoroverqualifiedjobapplicants.

Helpreducetheprobabilitythatjobapplicants,oncerecruitedandselected,willleave
theorganizationonlyafterashortperiodoftime.

Meettheorganizationslegalandsocialobligationsregardingthecompositionofits
Workforce

Begin identifying and preparing potential job applicants who will be appropriate candidates.

Increaseorganizationalandindividualeffectivenessintheshorttermandlongterm.

Evaluatetheeffectivenessofvariousrecruitingtechniquesandsourcesforalltypesof jobapplicants.

Recruitmentisapositivefunctioninwhichpublicityis giventothejobsavailableinthe organization

andinterestedcandidatesareencouragedtosubmitapplicationsforthe purposeofselection.
Recruitmentrepresentsthefirstcontactthatacompanymakeswithpotentialemployees.Itis
throughrecruitment that many individualswill cometo knowacompany and eventually
decidedwhethertheywishtoworkforit.Awell-plannedandwell-managedrecruitingeffort will
resultinhigh quality applicants,whereas,ahaphazardand piecemeal effortswill resultin mediocreones

NEED FOR THE STUDY

14 | P a g e

In the present context of the organization study, the recruitment and placement
policies and practices assume importance. it will help the government , in general and
the management in particular to evolve sound policy of the recruitment and
placement .

Recruitment represents the first contact that a company makes with potential
employees, it is through recruitment that many individuals will come to know about a
company and eventually decide whether they wish to work for it.

A well-planned and well-managed redressing affect will result in high quality

applicants where as a haphazard and piece meal effort will result in mediocre once.

High quality employees cannot be selected when better candidates do not know
of job openings or not interested in working for the companies do not apply. The
recruitment processes inform qualified individuals and generate enthusiasm among
the best candidate so that they will apply for the vacant positions.

In view of the above I can select the topic recruitment and selection for my
project work and tried to analyze the recruitment rules and procedures in soma
enterprise limited.
15 | P a g e

OBJECTIVES

Recruitment is defined as a process to discover the sources of manpower to

meet the requirements of the staffing schedule and to employ effective measures for
attracting that manpower in adequate number to facilitate effective selection of an
effective workforce.

Edwin B. Flippo defined recruitment as the process of searching for

prospective employee and stimulating them to apply for jobs in the organization.
These definitions can be analyzed by discussing the processes of recruitment through
system approach.

OBJECTIVES OF RECRUITMENT:
The objectives of recruitment are:
1. To induct outsiders with a new perspective to lead the company.
2. To develop an organizational culture that attract competent people to the
company
3. To search or head hunt/head pouch people whose skills fit the organization,

Scope of study:

The benefit of the study for the researcher is that it helped to gain knowledge and experience and also
provided the opportunity to study and understand the prevalent recruitment procedures.

The key points of my research study are:

• To Understand and analyze various HR factors including recruitment procedure at consultant.

• To suggest any measures/recommendations for the improvement of the recruitment procedures

16 | P a g e

Chapter II
Review of literature
17 | P a g e

Recruitment
Recruitmentreferstotheprocessofidentifyingandattractingjobseekerssoastobuildapool
ofqualifiedjobapplicants.Theprocess comprises fiveinterrelatedstages, viz,

Planning.
Strategydevelopment.
Searching.
Screening.
Evaluationandcontrol.

Theidealrecruitmentprogrammeistheonethatattractsarelativelylargernumberof qualified
applicantswhowillsurvivethescreeningprocessandacceptpositionswiththeorganisation,
whenoffered.Recruitmentprogrammes canmiss theidealinmanywaysi.e.by failingtoattract
anadequateapplicantpool,byunder/oversellingtheorganisationorbyinadequatescreening
applicantsbeforethey entertheselectionprocess.Thus,toapproach theideal,individuals
responsiblefortherecruitmentprocessmustknowhowmanyandwhattypesof employeesare
needed,where andhowtolookfortheindividualswith theappropriatequalificationsand
interests,whatinducementtouseforvarioustypes of applicantsgroups,howtodistinguish
applicantswhoarequalifiedfrom thosewhohaveareasonablechanceofsuccessandhowto
evaluatetheirwork.

STAGE 1: RECRUITMENTPLANNING:

Thefirststageintherecruitmentprocessisplanning.Planninginvolvesthetranslation
oflikelyjobvacanciesandinformationaboutthenatureofthesejobsintosetofobjectivesor
targetsthatspecifythe(1)Numbers and(2)Typesofapplicants tobecontacted.

Numbers of contact:

Organizationnearly always plan toattractmoreapplicants thantheywillhire.Someof those

contactedwillbeuninterested,unqualified orboth.Each timearecruitmentProgrammeis
contemplated,onetaskistoestimatethenumberofapplicantsnecessarytofillallvacancies
withthequalifiedpeople.

Types ofcontacts:

Itisbasicallyconcernedwiththetypesofpeopletobeinformedaboutjobopenings.Thetype of
peopledependsonthetasksandresponsibilitiesinvolvedandthequalificationsand experienceexpected.
Thesedetails areavailablethroughjobdescriptionandjobspecification.
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STAGE 2:STRATEGYDEVELOPMENT:

Whenitisestimatedthatwhattypesofrecruitmentandhowmanyarerequiredthenonehas
concentratein(1).MakeorBuyemployees.(2).Technologicalsophisticationofrecruitment
andselection devices.(3).Geographical distribution oflabourmarketscomprisingjob seekers. (4).
Sourcesofrecruitment. (5).Sequencingtheactivitiesinthe recruitmentprocess.

Make orBuy:

Organisationmustdecidewhethertohireskilledemployeesandinveston trainingand
educationprogrammes,ortheycanhireskilledlabourandprofessional.Essentially,thisisthe
“Makeorbuy” decision.Organizations,whichhireskilledandprofessionalsshallhavetopay
morefortheseemployees.

TechnologicalSophistication:

Theseconddecisioninstrategydevelopmentrelatestothemethodsusedinrecruitmentand
selection.Thisdecisionismainlyinfluencedby theavailabletechnology.Theadventof computershas
madeit possibleforemployersto scan nationaland internationalapplicant
qualification.Althoughimpersonal,computershavegiven employersand job seekersa wider
scopeofoptionsintheinitial screeningstage.

Where tolook:

Inordertoreducethecosts,organizationslookintolabourmarketsmostlikelytoofferthe
requiredjobseekers.Generally,companieslookintothenationalmarketformanagerialand
professionalemployees,regionalorlocalmarketsfortechnicalemployeesandlocalmarketsfor
theclericalandblue-collar employees.

Whentolook:

Aneffectiverecruitingstrategymustdeterminewhentolook-decideonthetimingsofevents besides
knowingwhereandhowtolookforjobapplicants.

STAGE 3:SEARCHNG:

Oncearecruitmentplanandstrategy areworkedout,thesearchprocesscanbegin.Search involves

twosteps

A).Sourceactivationand

B).Selling.
19 | P a g e

A).SourceActivation:

Typically,sourcesandsearchmethodsareactivatedbytheissuanceofanemployee
requisition.Thismeansthatnoactualrecruitingtakesplaceuntillonemanagershaveverified
thatvacancydoes existorwillexist.

If theorganisationhasplannedwell anddoneagoodjobof developingitssourcesand

searchmethods,activationsoonresultsinafloodofapplications and/orresumes.

Theapplicationreceivedmustbescreened.Thosewhopasshavetobecontactedand
invitedforinterview.Unsuccessfulapplicantsmustbesentletterofregret.

B).Selling:

Asecondissuetobeaddressedinthesearchingprocess concernscommunications.
Here,organisationwalkstightrope.On onehand,theywanttodowhatevertheycantoattract
desirableapplicants.Ontheotherhand,theymustresistthetemptationof oversellingtheir virtues.

In sellingtheorganisation,both themessage andthemediadeserveattention.Message

refersto the employmentadvertisement.Withregardstomedia,itmaybestated that
effectivenessofanyrecruitingmessagedependsonthemedia.Mediaareseveral-somehave
lowcredibility,whileothersenjoyhighcredibility.Selectionofmediumormedianeedstobe
donewithalotofcare.

STEP4:SCREENING:

Screeningofapplicantscanberegardedasanintegralpartoftherecruitingprocess,though
manyviewitasthefirststepintheselectionprocess.Eventhedefinitiononrecruitment,we
quotedinthebeginningof thischapter,excludesscreeningfromitsscope.However,wehave
includedscreeninginrecruitmentforvalidreasons.Theselectionprocesswillbeginafterthe
applicationshavebeenscrutinizedandshort-listed.Hiringof professorsinauniversityisa typical
situation. Application received inresponse to advertisements is screened and only
eligibleapplicants arecalledfor aninterview.AselectioncommitteecomprisingtheVice-
chancellor,Registrarandsubjectexperts conducts interview.Here,the recruitmentprocess extends
uptoscreeningtheapplications.Theselectionprocess commences onlylater.

Purposeofscreening

Thepurposeofscreeningistoremovefromtherecruitmentprocess,atanearlystage,those
applicantswhoarevisibly unqualifiedforthejob.Effectivescreeningcansaveagreatdeal of
timeandmoney.Caremustbeexercised,however,toassurethatpotentiallygoodemployees
arenotrejectedwithoutjustification.

In screening, clear job specifications are invaluable. It is both good practice and alegal
necessitythatapplicant’s qualificationisjudgedonthebasisoftheirknowledge,skills,abilities
andinterestrequiredtodothejob.
20 | P a g e

Thetechniques usedtoscreenapplicants varydependingonthecandidatesources andrecruiting

methodsused.Interviewandapplicationblanksmaybeused toscreen walk-ins.Campus recruiters
andagencyrepresentatives useinterviews andresumes.Referencechecks arealso
usefulinscreening.

STAGE 5:EVALUATIONANDCONTROL:

Evaluation and control is necessary as considerable costs are incurred in the recruitment
process. Thecosts generallyincurredare:-

Salariesforrecruiters.

Management and professional time spent on preparing job description, job

specifications,advertisements,agencyliaisonandsoforth.

Thecostofadvertisements orrecruitmentmethodsthatisagency fees.

Recruitmentoverheads andadministrativeexpenses.

Costsofovertimeandoutsourcing,whilethevacancies remainunfilled.

Costofrecruitingunsuitablecandidates fortheselectionprocess.

3.1EvaluationofRecruitmentProcess

Therecruitmenthastheobjectiveof searchingforandobtainingapplicationsforjobseekersin
sufficientnumber andquality.Keepingthis objectiveinthemind,theevaluationmightinclude:

Returnrateofapplicationsentout.
NumberofsuitableCandidatesforselection.
Retentionandperformanceofthecandidates selected.
Costofthe recruitmentprocess
Timelapseddata
Comments onimageprojected.
21 | P a g e

4.1. Sources ofRecruitment

SOURCESOF MANAGERIALRECRUITMENT

INTERNAL SOURCES EXTERNAL SOURCES

1)Promotion 1)Campus recruitment

2)Transfers 2)Press advertisement
3)Internalnotification 3)Managementconsultancyservice
(Advertisement)
&privateemploymentexchanges
4)Retirement 4) D eputation of personnel or
transferfrom oneenterpriseto
another
5)Recall 5)Managementtrainingschemes
6)Former employees 6)Walk-ins,write-ins,talk-ins
7)Miscellaneous externalsources

Thesources ofrecruitmentcanbebroadlycategorizedintointernalandexternal sources-

InternalRecruitment–Internalrecruitmentseeksapplicantsforpositionsfromwithinthe
company.Thevariousinternal sourcesinclude

Promotions andTransfers–

Promotionisaneffectivemeansusingjobpostingandpersonnelrecords.Jobposting
requiresnotifyingvacantpositionsby postingnotices,circulatingpublicationsorannouncingat
staffmeetingsandinvitingemployees toapply.Personnelrecordshelpdiscover employees who
aredoingjobsbelowtheireducationalqualifications orskilllevels.Promotionshasmany
advantageslikeitisgoodpublicrelations,buildsmorale,encouragescompetentindividuals whoare
ambitious,improvestheprobability ofgoodselection sinceinformation on the
individualsperformanceisreadily available,ischeaperthan going outsidetorecruit,those
choseninternallyarefamiliarwiththeorganizationthusreducingtheorientationtimeand
energyandalsoactsasatrainingdevicefordevelopingmiddle-levelandtop-levelmanagers.
However,promotions restrictthefieldofselectionpreventingfreshblood&ideasfromentering
theorganization.Italsoleads toinbreedinginthe organization.Transfers arealsoimportantin
providingemployeeswithabroad-basedviewof theorganization,necessaryforfuture promotions.
22 | P a g e

Employeeref
errals-

Employeescandevelopgoodprospectsfortheirfamiliesandfriendsbyacquainting
themwiththeadvantagesofajobwiththecompany,furnishingthemwithintroductionand
encouraging them toapply.Thisisavery effectivemeansasmany qualifiedpeoplecanbe
reachedataverylowcosttothecompany. Theotheradvantages arethattheemployees would
bringonlythosereferralsthattheyfeelwouldbeabletofitintheorganizationbasedontheir
ownexperience.Theorganizationcanbeassuredof thereliability andthecharacter of the
referrals.Inthis way,theorganizationcanalsofulfill socialobligations andcreategoodwill.

Former Employees-

These include retired employees who are willing to work on a part-time basis,
individuals wholeftworkandarewillingtocomebackforhighercompensations.Even
retrenchedemployees aretakenuponceagain.Theadvantagehereis thatthepeoplearealready known
to theorganization and thereisnoneed tofind out theirpastperformance andcharacter.
Also,thereisnoneedofanorientationprogrammeforthem,sincetheyarefamiliarwiththe
organization.

Dependents ofdeceasedemployees-

Usuallybanksfollowthispolicy.Ifanemployeedies,his/ herspouseorsonor
daughterisrecruitedintheirplace.Thisisusuallyaneffectivewaytofulfillsocialobligation
andcreategoodwill.

Recalls:-

Whenmanagementfaces aproblem, whichcanbesolvedonlybyamanager whohas proceeded

onlongleave,itmaydedecidedtorecallthatpersons aftertheproblemissolved,hisleavemay
beextended.

Retirements:-

Attimes,managementmaynotfindsuitablecandidatesinplaceoftheonewhohadretired,
aftermeritoriousservice.Underthecircumstances,managementmay decidetocallretired managers
withnewextension.

Internalnotification(advertisement):-

Sometimes,managementissuesaninternalnotificationforthebenefitofexistingemployees.
Mostemployeesknowfromtheirownexperienceabouttherequirementofthejobandwhat sortof
personthecompanyislookingfor.Oftenemployeeshavefriendsoracquaintanceswho meetthese
requirements.Suitablepersons areappointedatthevacantposts.
23 | P a g e

(II)ExternalRecruitment–External recruitmentseeksapplicantsforpositionsfrom sources

outside the company. They have outnumbered theinternal methods. The various external
sources include

Professionalor TradeAssociations:-

Many associationsprovideplacementservicetoitsmembers.Itconsistsof
compilingjobseeker’slistsandprovidingaccesstomembersduringregional ornational
conventions.Also,thepublicationsoftheseassociationscarryclassifiedadvertisementsfrom
employersinterestedin recruiting theirmembers.Theseareparticularly usefulforattracting
highlyeducated,experiencedorskilledpersonnel.Also,therecruiterscanzerooninspecific
jobseekers,especiallyforhard-to-filltechnicalposts.

Advertisements:-

Itisapopularmethodof seekingrecruits,asmanyrecruiterspreferadvertisements becauseof

theirwidereach.Wantadsdescribethejobbenefits,identifytheemployerandtell those interested how
to apply. Newspaper isthemost common medium but for highly
specializedrecruits,advertisementsmaybeplacedinprofessionalorbusinessjournals.

Advertisementsmustcontain properinformationlikethejob content,working

conditions,locationofjob,compensationincludingfringebenefits,jobspecifications,growth
aspects,etc.Theadvertisementhastosell theideathatthecompany andjobareperfectfor the
candidate.Recruitmentadvertisements canalsoserveas corporateadvertisements tobuild
company‟image.Italsocosteffective.

EmploymentExchanges:-

EmploymentExchangeshavebeen setupall overthecountry indeferenceto the

provisionoftheEmploymentExchanges(CompulsoryNotificationofVacancies)Act,1959.
TheActappliestoallindustrial establishmentshaving25workersormoreeach.TheAct
requiresalltheindustrialestablishmentstonotifythevacanciesbeforetheyarefilled.The
majorfunctionsoftheexchangesaretoincreasethepool ofpossibleapplicantsandtodothe
preliminaryscreening.Thus,employmentexchangesactasalinkbetweentheemployersand
theprospectiveemployees.Theseofficesareparticularlyusefultoinrecruitingblue-collar,
whitecollarandtechnicalworkers.

Campus Recruitments:-

Colleges, universities, research laboratories, sports fields and institutes are

fertilegroundforrecruiters,particularlytheinstitutes.Campus Recruitmentis goingglobalwith
companieslike HLL, Citibank,HCL-HP,ANZGrindlays,L&T,MotorolaandReliancelooking
forglobalmarkets.Somecompaniesrecruitagivennumberofcandidatesfrom theseinstitutes
everyyear.Campus recruitmentis somuchsoughtafterthateachcollege;universitydepartment
orinstitutewillhaveaplacementofficertohandlerecruitmentfunctions.However,itisoften
anexpensiveprocess, evenif recruitingprocess producesjoboffers andacceptanceseventually.
Amajorityleavetheorganizationwithinthefirstfiveyearsoftheiremployment.Yet,itisa
majorsourceofrecruitmentforprestigious companies.
24 | P a g e

Walk-ins,Write-ins andTalk-ins

Themostcommon andleastexpensiveapproachforcandidatesisdirect
applications,inwhichjobseekerssubmitunsolicitedapplicationletters orresumes.Direct
applicationscanalsoprovideapool ofpotentialemployeestomeetfutureneeds.From
employees‟viewpoint,walk-insarepreferableastheyarefreefrom thehasslesassociatedwith
othermethods ofrecruitment.Whiledirectapplications areparticularlyeffectiveinfillingentry-
levelandunskilledvacancies,someorganizationscompilepoolsofpotentialemployeesfrom
directapplicationsforskilledpositions.Write-insare thosewhosendwrittenenquiries.These
jobseekers areaskedtocompleteapplicationformsforfurtherprocessing.Talk-insinvolves the job
aspirantsmeeting therecruiter(on an appropriateddate)fordetailed talks.Noapplicationis
requiredtobesubmittedtothe recruiter.

Contractors:-

Theyareused torecruitcasualworkers.Thenamesoftheworkersarenotenteredin the company

recordsand,to thisextent; difficultiesexperiencedinmaintainingpermanentworkers areavoided.

Consultants:-

Theyarein theprofessionforrecruitingandselectingmanagerial andexecutive

personnel.They areuseful asthey havenationwidecontactsandlendprofessionalism to the
hiringprocess.They alsokeepprospectiveemployerand employeeanonymous.However,the
costcanbeadeterrentfactor.

HeadHunters:-

Theyare usefulinspecializedandskilledcandidate workingina particular company.

Anagent issent to represent therecruiting company and offer is made to the
candidate.Thisisausefulsourcewhenboth thecompaniesinvolvedarein thesamefield,and
theemployeeis reluctanttotaketheoffersincehefears,thathis companyis testinghisloyalty.

Radio,TelevisionandInternet:-

Radioandtelevisionareusedtoreachcertaintypesofjobapplicantssuchas
skilledworkers.Radioandtelevisionareusedbutsparingly,andthattoo,by government
departmentsonly.Companiesintheprivatesectorarehesitanttouse themediabecause ofhigh
costsandalsobecausetheyfearthatsuch advertisingwillmakethecompanieslookdesperate
anddamagetheirconservativeimage.However,thereisnothinginherentlydesperateabout
usingradioand television.Itdependsupon whatissaidandhowitisdelivered.Internetis
becomingapopularoptionforrecruitmenttoday.Therearespecializedsiteslikenaukri.com. Also,
websites of companies have a separate section wherein; aspirants can submit their resumes
andapplications.This provides awiderreach.
25 | P a g e

Competitors:-

Thismethodispopularlyknown as“poaching”or“raiding” whichinvolves

identifyingtherightpeopleinrivalcompanies,offeringthembettertermsandluringthem
away.Forinstance,severalexecutivesofHMTlefttojoinTitanWatchCompany.Thereare
legalandethicalissuesinvolvedinraidingrivalfirmsforpotential candidates.From thelegal
pointofview,anemployeeisexpectedtojoinaneworganizationonlyafterobtaininga„no
objectioncertificate‟fromhis/herpresentemployer.Violatingthisrequirementshallbindthe
employeetopay afewmonths‟salary tohis/herpresentemployerasapunishment.However,
therearemanyethicalissues attachedtoit.

Mergers andAcquisitions:-

When organizationscombine,theyhaveapool ofemployees,outofwhom some

maynotbenecessaryanylonger.Asaresult,theneworganizationhas,ineffect,apoolof qualifiedjob
applicants.Asaresult,newjobsmaybecreated.Both new andoldjobsmaybe
readilystaffedbydrawingthebest-qualifiedapplicantsfrom thisemployeepool.Thismethod
facilitatestheimmediateimplementationofanorganization’s strategicplan.Itenablesan
organizationto pursue a business plan, However, the need to displace employees and to
integrate a large number of them rather quickly into a new organization means that the
personnel-planningandselectionprocess becomes criticalmorethanever.

3.SELECTION
Selectionisdefinedas theprocess ofdifferentiatingbetweenapplicantsinordertoidentify(and
hire)thosewithagreaterlikelihoodofsuccessinajob.

Selectionisbasicallypickinganapplicantfrom (apool ofapplicants)whohastheappropriate

qualificationandcompetencytodothejob.

Thedifferencebetweenrecruitmentandselection:

Recruitment is identifying n encouraging prospective employees to apply for a job and

Selectionis selectingtherightcandidatefromthepoolofapplicants.

3.1SELECTIONPROCESS
Selectionisalongprocess,commencingfromthepreliminaryinterviewoftheapplicantsand
endingwiththecontractofemployment.

Thefollowingchartgives anideaaboutselectionprocess:-
26 | P a g e

ExternalEnvironment

InternalEnvironment

PreliminaryInterview
RejectedApplication

SelectionTests

EmploymentInterview

ReferenceandBackground
Analysis

SelectionDecision

PhysicalExamination

JobOffer

EmploymentContract

Evaluation
21 | P a g e

Environmentfactoraffectingselection:-

Selectionisinfluencedbyseveralfactors. Moreprominentamongthemaresupplyand
demandof specificskillsinthelabourmarket,unemploymentrate,labour-market
conditionslegal and political considerations, company’s image, company’s policy,
humanresourcesplanningandcostof hiring.Thelastthreeconstitutetheinternal
environmentandthe remainingformtheexternalenvironmentofselectionprocess.

STEP1:-PRELIMINARYINTERVIEW

Theapplicantsreceivedfrom job seekerswouldbesubjecttoscrutiny soastoeliminate

unqualifiedapplicants.Thisisusuallyfollowedbya preliminaryinterviewthe purpose of
whichismoreorless thesameasscrutinyof application,thatis,eliminateofunqualified
applicants.Scrutiny enablesthe HRspecialiststoeliminateunqualifiedjobseekersbased
ontheinformationsuppliedintheirapplicationforms.Preliminaryinterview,ontheother
hand,helpsrejectmisfitsforreason,which didnotappearin theapplicationforms.
Besides,preliminaryinterview,oftencalled„courtesyinterview‟,is agoodpublic relation
exercise.

STEP2:-SELECTIONTEST

Jobseekers whopass thescreeningandthepreliminaryinterviewarecalledfortests.

Differenttypesoftestsmaybeadministered,dependingonthejobandthecompany.
Generally,testsareusedtodeterminetheapplicant’s ability,aptitudeandpersonality.

Thefollowingarethetype ofteststaken:

1).Abilitytests:-

Assistindetermininghowwellanindividualcanperformtasks relatedtothejob.An
excellentillustrationof thisisthetypingtestsgiventoaprospectiveemployerfor
secretarialjobalsocalledasACHEIVEMENTTESTS.Itisconcernedwith whatone
hasaccomplished.Whenapplicantclaimstoknowsomething,anachievementtestis taken
tomeasurehowwellthey knowit.Tradetestsarethemostcommon typeof
achievementtestgiven.Questionshavebeenpreparedand testedforsuch tradesas
asbestosworker,punch-press operators,electriciansandmachinists.Thereare,of course,
manyunstandardisedachievementtestsgiveninindustries,suchastypingordictation tests
foranapplicantforastenographicposition.

2).Aptitudetest:-

Aptitudetestsmeasurewhetheranindividual’shasthecapacityorlatentabilityto
learnagivenjobifgivenadequatetraining.Theuseof aptitudetestisadvisablewhenan
applicanthashadlittleornoexperiencealongthelineofthejobopening.Aptitudes tests
helpdetermineaperson’spotentialtolearninagivenarea.Anexampleofsuchtestis the
generalmanagementaptitudetests (GMAT),whichmanybusinessstudents takepriorto
gainingadmissiontoagraduatebusiness schoolprogramme.

RECRUITMENTANDSELECTION
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Aptitudetestindicatesthe ability orfitnessofanindividual toengagesuccessfullyin

anynumberofspecializedactivities.Theycoversuch areasclerical aptitude,numerical
aptitude,mechanicalaptitude,motorco-ordination,fingerdexterityandmanualdexterity.
Thesetestshelptodetectpositivenegativepointsinaperson’s sensoryorintellectual
ability.Theyfocus attentiononaparticulartypeoftalentsuchaslearningorreasoningin
respectofaparticularfieldofwork.

Forms ofaptitudetest:

Mentalorintelligencetests:Theymeasuretheoverallintellectualabilityofa
personandenabletoknowwhetherthepersonhasthementalability todealwith
certainproblems

Mechanical aptitude tests: They measure the ability of a person to learn a

particulartypeofmechanicalwork.Thesetests helps tomeasurespecialized
technicalknowledgeand problemsolving abilities ifthecandidate. Theyare
usefulinselectionofmechanics,maintenanceworkers,etc.

Psychomotororskillstests:Theyarethose,whichmeasureaperson’sabilityto do a
specific jobsuch tests are conducted in respect of semi- skilled and repetitivejobs
suchas packing,testingandinspection,etc.

3).Intelligencetest:

This test helps to evaluate traits of intelligence. Mental ability, presence of mind
(alertness),numericalability,memoryandsuchotheraspects canbemeasured.

Theintelligenceisprobablythemostwidelyadministeredstandardizedtestinindustry.It is
takentojudgenumerical,skills,reasoning,memoryandsuchotherabilities.

4).InterestTest:

This is conducted to find out likes and dislikes ofcandidates towardsoccupations,

hobbies,etc.such testsindicatewhich occupationsaremoreinlinewith aperson’s interest.
Such tests also enable the company to provide vocational guidance to the
selectedcandidates andeventotheexistingemployees.

Thesetestsareusedtomeasureanindividual’sactivity preferences.Thesetestsare
particularlyusefulforstudentsconsideringmany careersoremployeesdecidingupon
careerchanges.

5). Personality Test:

Theimportanceof personalitytojobsuccessisundeniable.Often anindividual who possesses

theintelligence,aptitudeandexperienceforcertainhasfailedbecauseof
inabilitytogetalongwithandmotivateotherpeople.
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Itisconductedtojudgematurity,socialorinterpersonal skills,behaviorunderstressand
strain,etc.thistestisverymuchessential oncaseofselectionofsalesforce,public
relationstaff,etc. wherepersonalityplays animportantrole.

Personalitytestsaresimilartointeresttestsinthatthey,also,involveaseriousproblem
ofobtaininganhonestanswer.

6). ProjectiveTest:

This testrequiresinterpretationofproblems orsituations.Forexample,aphotographora

picturecanbeshowntothecandidates andtheyareaskedtogivetheirviews, and opinions
aboutthepicture

7).GeneralknowledgeTest:

Nowadays G.K. Tests areverycommontofindgeneralawareness ofthecandidatesinthe

fieldofsports,politics,worldaffairs,currentaffairs.

8). PerceptionTest:

Attimesperception testscanbeconductedtofind outbeliefs,attitudes,andmental

sharpness.etc.

9).GraphologyTest:

It is designed to analyze the handwriting of individual. It has been said that an

individual’s handwritingcan suggestthedegreeofenergy,inhibitionandspontaneity,as well
asdisclosetheidiosyncrasiesand elementsofbalanceandcontrol.Forexample,big lettersand
emphasison capitallettersindicateatendency towardsdomination and competitiveness.A
slantto therightmoderatepressure andgoodlegibility show leadershippotential.

10). PolygraphTest:

Polygraphisaliedetector,whichisdesignedtoensureaccuracyoftheinformationgiven
intheapplications.Departmentstore,banks,treasuryofficesandjewellery shops,thatis,
thosehighlyvulnerabletotheftorswindlingmayfindpolygraphtests useful.

11).MedicalTest:

Itrevealsphysicalfitnessofacandidate.Withthedevelopmentof technology,medical tests

have become diversified. Medical servicing helps measure and monitor a candidate’s
physicalresilienceuponexposuretohazardous chemicals.
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ChoosingTests:

Thetestmustbechosenin thecriteriaof reliability,validity,objectivity and

standardization.Theyare:-

1. Reliability:-

Itreferstostandardizationof theprocedureof administeringandscoringthetest

results.Apersonwhotakestestsonedayandmakes acertainscoreshouldbeabletotake
thesametestthenextdayorthenextweekandmakemoreorlessthesamescore.An individual’s
intelligence,forexample,isgenerally astablecharacteristic.Soifwe
administeranintelligencetest,apersonwhoscores110inMarchwouldscorecloseto
110iftestedinJuly.Tests,whichproducewidevariationsinresults,servelittlepurpose
inselection.

2.Validity:-

Itisatest,whichhelpspredictwhetherapersonwillbesuccessfulinagivenjob. A
testthathasbeenvalidatedcanbehelpfulindifferentiatingbetweenprospective employees
whowillbeabletoperformthejobwellandthosewhowillnot.Naturally,no
testwillbe100%accuratein predictingjob success.Avalidated testincreasespossibility
ofsuccess

Therearethreeways ofvalidatingatest. Theyareasfollows:-

1).ConcurrentValidity:-thisinvolves determiningthefactors thatarecharacteristics of

successfulemployees andthenusingthesefactorsas theyardsticks.

2).PredictiveValidity:-itinvolvesusingaselectiontestduringtheselectionprocess and
thenidentifying thesuccessfulcandidates.The characteristicsofboth successfulandless
successfulcandidates arethenidentified.

3).SyntheticValidity:-itinvolvestakingpartsofseveralsimilarjobsratherthanone
completejobtovalidatetheselectiontest.

3.Objectivity:-

Whentwoormorepeoplecaninterprettheresultofthesametestandderivethesame
conclusion(s),thetestissaidtobeobjective.Otherwise,thetestevaluators‟subjective
opinionsmayrenderthetestuseless.

4.Standardization:-

Atestthatisstandardizedisadministeredunderstandardconditiontoalargegroup
ofpersonwhoare representatives oftheindividualsfor whomitisintended.Thepurpose of
standardizationis toobtainnormsorstandard,sothataspecifictestscorecanbe
meaningfulwhencomparedtootherscoreinthegroup.
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STEP3:-
INTERVIEW:

Thenextstepin theselection processisaninterview.Interviewisformal,in-depth

conversation conductedtoevaluatetheapplicant’s acceptability.Itisconsideredtobe
excellentselectiondevice.Itisface-to-faceexchangeofview,ideas andopinionbetween
thecandidatesandinterviewers.Basically,interviewisnothingbutanoralexamination
ofcandidates.Interviewcanbeadaptedtounskilled,skilled,managerialandprofession
employees.

Types ofinterview:-

Interviews canbeofdifferenttypes.Thereinterviews employedbythecompanies.

Followingarethevarious types ofinterview:-

InformalInterview:

An informal interview is an oral interview and may take place anywhere. The
employeeorthemanagerorthepersonnelmanagermayaskafewalmostinconsequential
questionslikename,placeofbirth,namesofrelativesetc.either intheirrespective offices
oranywhereoutsidetheplantof company.It didnotplanandnobodyprepares
forit.Thisisusedwidelywhenthelabourmarketistightandwhenyouneedworkers badly.

FormalInterview:

Formalinterviewsmaybeheldintheemploymentofficebyhisemploymentofficein
amoreformalatmosphere,withthehelpof wellstructuredquestions,thetimeandplace
oftheinterviewwillbestipulatedbytheemploymentoffice.

Non-directiveInterview:

Non-directiveintervieworunstructured interview isdesigned to let the interviewee

speakhismindfreely.Theinterviewerhasnoformalordirectivequestions,buthisall
attentionistothecandidate.Heencouragesthecandidateto talkby alittleprodding
wheneverheissilente.g.“Mr.Ray,pleasetellusaboutyourselfafteryourgraduated
fromhighschool”.

DepthInterview:

Itisdesignedtointenselyexaminethecandidate’s backgroundandthinkingandtogo into

considerabledetailonparticular subjectsofan important natureand ofspecial
interesttothecandidates.Forexample,ifthecandidatesays thatheisinterestedintennis,
aseriesof questionsmaybeaskedtotestthedepthof understandingandinterestof the
candidate.Theseprobingquestionsmustbeaskedwith tactand through exhaustive
analysis;itis possibletogetagoodpictureofthecandidate.
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Stress
Interview:

It is designed to test the candidate and his conduct and behavior by him under
conditionsofstressandstrain.Theinterviewermaystartwith“Mr.Joseph,wedonot
thinkyourqualificationsandexperienceareadequateforthisposition,‟andwatchthe reaction
ofthecandidates.Agoodcandidateswillnotyield,on thecontrary hemay substantiatewhyheis
qualifiedtohandlethejob.

This typeofinterviewisborrowedfromtheMilitaryorganisationandthisisveryuseful to
testbehaviorofindividualswhen they arefacedwith disagreeable and trying situations.

GroupInterview:

Itisdesignedto savebusyexecutive’s timeandto seehowthecandidatesmaybe

broughttogetherintheemploymentofficeandtheymaybeinterviewed.

PanelInterview:

Apanelor interviewing board or selectioncommittee may interviewthe candidate,

usuallyinthecase ofsupervisory andmanagerialpositions.Thistypeofinterviewpools
thecollectivejudgmentandwisdom ofthepanelintheassessmentofthecandidateand
alsoinquestioningthefaculties ofthecandidate.
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SequentialInterview:

Thesequentialinterviewtakes theone-to-oneastepfurther andinvolvesaseries of

interview,usuallyutilizingthestrength andknowledgebaseofeachinterviewer,sothat
eachinterviewercanaskquestionsinrelationtohis orhersubjectareaofeachcandidate, as
thecandidatemovesfromroomtoroom.

Structures Interview:

Inastructuredinterview,theinterviewerusespresetstandardizedquestions,whichare puttoall
theinterviewees.Thisinterviewisalsocalledas“Guided”or“Patterned”
interview.Itisusefulforvalidresults,especiallywhen dealingwith thelargenumberof
applicants.

UnstructuredInterview:

Itisalsoknownas“Unpatented”interview,theinterviewislargelyunplannedandthe
intervieweedoesmostofthetalking.Unguidedinterviewisadvantageousinasmuchas
itleadstoafriendlyconversationbetween theinterviewerandtheintervieweeandin the
process,thelaterrevealsmoreofhisorherdesireandproblems.ButtheUnpatentedinterviewlack
suniformityandworse,thisapproachmay overlookkey areasofthe applicant’s
skillsorbackground.Itisuseful whentheinterviewertriestoprobepersonal details
ofthecandidateitanalyzewhytheyarenotrightforthejob.

STEP 4:-REFERENCE CHECK:-

Many employersrequestnames,addresses,and telephonenumbersof referencesforthe

purposeofverifyinginformationandperhaps,gainingadditionalbackgroundinformation on
an applicant.Althoughlisted on theapplicationform,referencesarenotusually
checkeduntilanapplicanthassuccessfully reachedthefourthstageofasequential
selectionprocess.When thelabourmarketisvery tight,organizationssometimeshire
applicants beforecheckingreferences.

Previous employers,knownas publicfigures,universityprofessors,neighborsor

friendscanactasreferences.Previousemployersarepreferablebecausethey arealready aware
of theapplicant’s performance. Butthe problem with this reference is the
tendencyonthepartof thepreviousemployers toover-ratetheapplicantsperformance
justtogetridoftheperson.

Organizationsnormallyseek lettersofreference ortelephonereferences. The

latterisadvantageousbecauseofitsaccuracy andlowcost.Thetelephonereferencealso
hastheadvantageofsolicitingimmediate,relativelycandidcommentsandattitudecan
sometimes beinferredfromhesitations andinflectionsinspeech.
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STEP5:
SELECTIONDECISION:-

Afterobtaininginformationthrough theprecedingsteps,selection decision-themost

criticalofallthesteps-mustbemade.Theotherstagesintheselectionprocesshavebeen
usedtonarrowthenumberofthecandidates.Thefinaldecisionhastobemadethepool
ofindividuals whopasthetests, interviews andreferencechecks.

Theviewofthelinemanager willbegenerallyconsideredinthefinalselectionbecauseit
ishe/shewhoisresponsiblefortheperformanceof thenewemployee.TheHRmanager plays
acrucialroleinthefinal selection.

STEP6:-PHYSICALEXAMINATION:-

Aftertheselection decision andbeforethejob offerismade,thecandidateisrequired to

undergoaphysicalfitnesstest.Ajob offeris,often,contingentupon the candidatebeing
declaredfitafter thephysical examination.Theresultsof themedicalfitnesstestare
recordedin astatementandarepreservedin thepersonnel records.Thereareseveral
objectivesbehindaphysical test.Obviously,onereasonforaphysical testistodetectif
theindividual carriesanyinfectiousdisease.Secondly,thetestassistsindetermining
whetheranapplicantisphysicallyfittoperform thework.Thirdly,thephysical examination
information can be used to determine if there are certain physical capabilities, which
differentiate successful and less successful employees. Fourth, medicalcheck-
upprotectsapplicantswithhealthdefectsfromundertakingworkthat couldbedetrimental
tothem ormightotherwiseendangertheemployer’sproperty. Finally, such an examination
will protect the employer fromworkers compensation
claimsthatarenotvalidbecausetheinjuriesorillnesswerepresentwhen theemployee was
hired.

STEP7:-JOBOFFER:-

Thenextstepintheselectionprocessisjoboffertothoseapplicants whohavecrossedall
theprevioushurdles.Jobofferismadethroughaletter of appointed.Suchaletter
generallycontains adatebywhichtheappointeemustreportonduty.Theappointeemust
begiven reasonabletimeforreporting. Thosisparticularlynecessarywhenheorsheis
alreadyin employment,in which casetheappointeeisrequiredtoobtain arelieving
certificatefrom thepreviousemployer.Again,anewjobmayrequiremovementto
anothercity,whichmeans considerablepreparation,andmovementofproperty.

Thecompanymayalsowanttheindividualtodelay thedateofreportingonduty.Ifthe
newemployee’sfirstjobuponjoiningthecompanyistogooncompanyuntilperhapsa
weekbeforesuch trainingbegins.Naturallythispracticecannotbeabused,especiallyif
theindividualis unemployedanddoes nothavesufficientfinances.

Decencydemandsthattherejectedapplicantsbeinformedabouttheirnon-selection.
Theirapplicantsmaybepreservedforfutureuse,ifany.Itneedsnoemphasisthatthe applications
ofselectedcandidatesmustalsobepreservedforthefuture references.
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STEP8:-CONTRACTOF EMPLOYMENT:-

Thereisalsoaneedforpreparingacontractof employment.Thebasicinformationthat
shouldbeincludedinawrittencontractofemploymentwillvaryaccordingtothelevelof
thejob,butthefollowingchecklistsetsoutthetypicalheadings:

Jobtitle
Duties,includingaparsesuchastheemployeewillperformsuchduties andwill be
responsibletosuchaperson,asthecompanymayfromtimetotimedirect”.
Datewhencontinuous employmentstarts andthebasisforcalculatingservice.
Rateofpay, allowance,overtimeand shiftrates,methodofpayments.
Hoursofworkincludinglunchbreakandovertimeand shiftarrangements.
Holidayarrangements, paidholidays peryear,publicholidays,
lengthofnoticeduetoandfromemployee. Grievances procedure.
o Disciplinaryprocedure(oranyreferencetoit).
o Workrules (oranyreferencetothem).
o Arrangements forterminatingemployment.
o Arrangements forunionmembership(ifapplicable).
Special terms relating to rights to patentsand designs, confidential
informationandrestraints ontradeafterterminationofemployment.
Employer’srighttovarytermsofthecontractsubjecttopropernotificationbeing given.

Thedrawbackwith thecontractsisthatitisalmosttoenforcethem.A determined

employeeisboundtoleave theorganisation,contractornocontract.The employeeis
preparedtopaythepenaltyforbreachingtheagreementorthenewemployer willprovide
compensations.Itisthereason thatseveralcompanieshavescrapped thecontracts altogether.

STEP9:-CONCLUDINGTHESELECTIONPROCESS:-

Contrary topopularperception,theselectionprocesswillnotendwithexecutingthe
employmentcontract. Thereis anotherstep–amoresensitiveonereassuringthose
candidateswhohavenotselected,notbecauseof anyseriousdeficienciesintheir
personality,butbecausetheirprofiledidnotmatchtherequirementof theorganisation.
Theymustbetoldthatthosewhowereselectedweredonepurelyonrelativemerit.

STEP 10: -EVALUATIONOF SELECTIONPROGRAMME:-

Thebroadtestoftheeffectivenessoftheselectionprocessisthequalityofthe
personnelhired.An organisationmusthavecompetentandcommittedpersonnel.The
selectionprocess,ifproperlydone,willensureavailabilityofsuchemployees.Howto
evaluatetheeffectiveness ofaselectionprogramme?Aperiodicauditis theanswer.
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FourApproachestoSelection:

1).EthnocentricSelection:

Inthisapproach,staffingdecisionsaremadeattheorganization’sheadquarters.
Subsidiarieshavelimitedautonomy,andtheemployeesfromtheheadquartersathome
andabroadfillkeyjobs.Nationalsfromtheparentcountry dominatetheorganizationsat
homeandabroad.

2). PolycentricSelection:

Inpolycentricselection,eachsubsidiaryis treatedas adistinctnationalentitywith

localcontrol keyfinancial targetsandinvestmentdecisions.Local citizensmanage
subsidiaries,butthekeyjobsremainwithstafffrom theparentcountry.Thisisthe
approach,whichislargelypracticedinourcountry

3).Region centricSelection:-

Here,control withinthegroupandthemovementsofstaffaremanagedona
regionalbasis,reflectingtheparticular dispositionof businessandoperationswithinthe
group. Regional managershavegreater discretionindecision. Movement ofstaffis largely
restrictedtospecificgeographical regionsandpromotionsto thejobscontinueto
bedominatedbymanagersfromtheparents company.

4).GeocentricStaffing:-

In thiscase,businessstrategyisintegratedthoroughly on globalbasis.Staff
developmentandpromotionarebasedonability,notnationality.Thebroadandother partsof
thetopmanagementstructurearethoroughlyinternationalincomposition. Needless
tosay,suchorganizationsareuncommon.
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3.3 PROBLEMSINEFFECTIVESELECTION:-
Themainobjectiveofselectionistohirepeoplehavingcompetenceandcommitment.
Thisobjectivesoftendefeatedbecauseofcertainbarriers.Theimpediments,which
checkeffectiveness ofselection,areperception,fairness,validity,reliabilityandpressure.

Perception:-Ourinability tounderstandothersaccuratelyisprobably themost

fundamentalbarriertoselectingtherightcandidate.

Selectiondemandsanindividual oragroup ofpeopletoassessandcomparethe

respectivecompetenciesofothers,with theaim ofchoosing therightpersonsfor
thejobs.Butourviews arehighlypersonalized.

Fairnessinselectionrequiresthatnoindividualshouldbediscriminatedagainst
onthebasisofreligion,region,raceorgender.Butthelownumbersofwomen
andotherlessprivilegedsectionsofthesocietyinmiddleandseniormanagement
positions andopendiscriminationonthebasisofageinjobadvertisements andin
theselection processwouldsuggestthatall the effortstominimizeinequityhave
notbeeneffective.

Validity,asexplainedearlier,isatestthathelpspredictjobperformanceofan
incumbent.Atestthathasbeenvalidatedcandifferentiatebetweentheemployees
whoperform wellandthosewhowillnot.However,avalidatedtestdoesnot
predictjobsuccess accurately.Itcanonlyincreasepossibilityofsuccess.

Reliability:A reliablemethodisone,which willproduceconsistentresultswhen

repeatedin similarsituations.Likevalidatedtest,a reliabletestmayfailtopredict
jobperformancewithprecision.

Pressure:Pressure isbrought on the selectors by politicians,bureaucrats,

relatives,friends andpeers toselectparticular candidates.Candidates selected
becauseof compulsionsareobviouslynottherightones.Appointmentstopublic
sectors undertakings generallytakeplaceundersuchpressures.
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4.DifferencebetweenRecruitment and Selection

1 Recruitmentistheprocessofsearchingforprospectivecandidatesandmotivating
themtoapplyforjobintheorganization. Whereas selectionisaprocess ofchoosing
mostsuitablecandidates outofthose whoare interestedandalsoqualifiedforjob.

2 Intherecruitmentprocess,vacanciesavailablearefinalized,publicityisgivento them
andapplicationsarecollectedfrominterestedcandidates. In theselection
process,availableapplications arescrutinized.Tests,interviewandmedical
examinationareconductedinordertoselectmostsuitablecandidates.

3 Inrecruitmentthepurposeistoattractmaximumnumbersofsuitableandinterested
candidatesthrough applications.Inselection processthepurposeisthatthebest
candidateoutofthosequalifiedandinterestedintheappointment.

4 Recruitmentis priortoselection.Itcreates properbaseforactualselection. Selection

isnexttorecruitment.Itis outofcandidatesavailable /interested.

5 Recruitmentis thepositivefunctioninwhichinterestedcandidatesareencouragedto
submitapplication.Selectionisanegativefunctioninwhichunsuitablecandidates
areeliminatedandthebestoneis selected.

6 Recruitmentistheshortprocess.Inrecruitmentpublicityisgiventovacanciesand
applicationsarecollectedfrom differentsourcesSelectionisalengthy process.It
involvesscrutinyof applications,givingtests,arranginginterviewsandmedical
examination.

7 Inrecruitmentservicesofexpertisnotrequiredwhere asinselection,servicesof expertis

required

8 Recruitmentisnotcostly.Expenditureisrequiredmainlyforadvertisingtheposts.
Selectionisacostlyactivity,asexpenditureisneededfortestingcandidatesand
conductofinterviews.
INTRODUCTION TO TOPIC

The human resources are the most important assets of an organization.The success or failure
of an organization is largely dependent on the caliberof the people working therein. Without
positive and creative contributionsfrom people, organizations cannot progress and prosper.

In order to achievethe goals or the activities of an organization, therefore, they need to

recruitpeople with requisite skills, qualifications and experience. While doing so,they have to
keep the present as well as the future requirements of theorganization in mind.

Recruitment is distinct from Employment and Selection. Once therequired number and kind
of human resources are determined, themanagement has to find the places where the required
human resourcesare/will be available and also find the means of attracting them towards
theorganization before selecting suitable candidates for jobs.
33 | P a g e

All this process isgenerally known as recruitment. Some people use the term
“Recruitment”for employment. These two are not one and the same.

RECRUITMENT AND SELECTION

Recruitment and selection are two of the most important functions of personnel management.
Recruitment precedes selection and helps in selecting a right candidate. Recruitment is a process to
discover the sources of manpower to meet the requirement of the staffing schedule and to employ
effective measures for attracting that manpower in adequate numbers to facilitate effective selection
of efficient personnel.

Staffing is one basic function of management. All managers have responsibility of staffing function by
selecting the chief executive and even the foremen and supervisors have a staffing responsibility when
they select the rank and file workers. However, the personnel manager and his personnel department
is mainly concerned with the staffing function.

Every organization needs to look after recruitment and selection in the initial period and thereafter as
and when additional manpower is required due to expansion and development of business activities.

Right person for the right job¶ is the basic principle in recruitment and selection. Ever organization
should give attention to the selection of its manpower, especially its managers. The operative
manpower is equally important and essential for the orderly working of an enterprise. Every business
organization/unit needs manpower for carrying different business activities smoothly and efficiently
and for this recruitment and selection of suitable candidates are essential. Human resource
management in an organization will not be possible if unsuitable persons are selected and
employment in a business unit.
34 | P a g e

RECRUITMENT

Recruitment means to estimate the available vacancies and to make suitable arrangements for their
selection and appointment. Recruitment is understood as the process of searching for and obtaining
applicants for the jobs, from among whom the right people can be selected.

A formal definition states, ³It is the process of finding and attracting capable applicants for the
employment. The process begins when new recruits are sought and ends when their applicants are
submitted. The result is a pool of applicants from which new employees are selected´. In this, the
available vacancies are given wide publicity and suitable candidates are encouraged to submit
applications so as to have a pool of eligible candidates for scientific selection.

In recruitment, information is collected from interested candidates. For this different source such as
newspaper advertisement, employment exchanges, internal promotion, etc. are used.

In the recruitment, a pool of eligible and interested candidates is created for selection of most suitable
candidates. Recruitment represents the first contact that a company makes with potential employees

Definition:

According to EDWIN FLIPPO, ³Recruitment is the process of searching for prospective employees
and stimulating them to apply for jobs in the organization.´

Finding the right people is a make-or-break factor for success in business today. Recruiting the top
talent for a job takes time and you have to attract quality candidates who have the knowledge and
skills needed to help your company grow. The fact is, your success with recruitment depends on how
well you prepare your job ad, and use source of recruitment, and your interviewing skills.

Prepare a job ad that works to start, you want to be sure that your potential candidate truly
understands the job. The clearer you are with the task description, working conditions and advantages,
the less time you will waste examining and rejecting applications The essentials of any job description
are:

 A brief description of your company

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 Detailed outline of the tasks involved

 Qualifications and experience required

 Equipment and resources used to do the work

Skills required using them. However, you should also include work benefits (e.g., vacation, travel and
perks), general working conditions (e.g., scheduling, outside work) and the specific traits required
(e.g., team building and communications skills). Ultimately, you want to be perceived as an attractive
employer in a competitive market. Find the right recruitment vehicle choose the vehicle that best
works for your company, depending on your budget and resources.

Word of mouth
, or simply telling your employees, friends and colleagues about a job opening, is a less expensive
strategy but generates fewer candidates. The advantage is that you already know something about
your recruiters and their skills, knowledge and achievements. This is a preferred method with
companies that have a finder's fee program for their employees .

Advertising

is a toss of the dice. If it goes well, it can help you find ideal candidates in a regional, national, or
international pool. If not, it's a costly investmentyielding few results.Make sure to factor in the time it
takes to go through a large number of resumes.

Employment agencies

Cost more but generally provide a good range of candidates. The employment advisors look
at your needs, screen a number of candidates, and only send you the applications that meet
your requirements. Bear in mind that the largest employment agencies do not necessarily
offer the best choice of candidates. There are numerous agencies that specialize in
recruitment in specific sectors. Recruiting online such asmonster.com, naukri.com &
timesjob.com. These can provide inexpensive, worldwide access to employees. In fact, 65%
of job seekers now have access to these types of services. Using the Internet for recruiting
usually involves regular visits to specialized recruitment sites, joining newsgroups, and
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posting your job openings on recruitment sites, electronic publications and on your own Web
site.

Recruitment is onlyone of the steps in the entire employment process. Some others use the
termrecruitment for selection. These are not the same either. Technicallyspeaking, the
function of recruitment precedes the selection function and itincludes only finding,
developing the sources of prospective employees andattracting them to apply for jobs in an
organization,

Whereas the selection isthe process of finding out the most suitable candidate to the job out
of thecandidates attracted (i.e., recruited).Formal definition of recruitment wouldgive clear
cut idea about the function of recruitment. It is a ‘joining process’ in that it tries to bring
together job seekers and employer with a view to encourage the former to apply for a job
with the latter.

In order to attract people for the jobs, the organization must communicate the position in such a way
that job seekers respond. To be cost effective, the recruitment process should attract qualified
applicants and provide enough information for unqualified persons to self-select themselves out.

Thus, the recruitment process begins when new recruits are sought and ends when their applications
are submitted. The result is a pool of applicants from which new employees are selected.

RECRUITMENT PROCESS OF Times group

 As am in recruitment process I have done calls to some friends and their references to explain
the business opportunity process of the company

 Being a junior HR in the company I had been given the task of giving paper adds for
recruitment

 In the process of recruitment the company has taken the initiative by taking references of
existing staff of the company, and as remuneration the staff will be paid Rs.5000/- as incentive
towards each candidate recruited
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 Through consultancies that are committed to the company

SELECTION

Selection is defined as the process of differentiating between applicants in order to identify (and hire)
those with a greater likelihood of success in a job. Selection is basically picking an applicant from (a
pool of applicants) who has the appropriate qualification and competency to do the job. The difference
between recruitment and selection: Recruitment is identifying and encouraging prospective employees
to apply for a job. And Selection is selecting the right candidate from the pool of applicants.

Develop Profile Develop sources of recruitment Approaching the Targeted recruits Initial screening
and Interviews Reality check

After recruitment the next part is selection of best candidates

Make the interview deliver

Since the purpose of an interview is to identify and verify the candidate's potential, it should be
structured to bring out all the desired competencies and aptitudes. Remember that you have to decide
between the candidates: you could create a point system or analysis grid for comparing their strengths
and weaknesses. Here are a few points to consider when structuring an interview:

 Make a list in advance of the points for discussion and corresponding questions.

 Present the candidates with a situation they could face on the job and ask them how they
would react. This will enable you to evaluate the candidates' knowledge, skills and work methods.

 Ask the candidates to describe some difficult situations encountered in previous jobs and to
explain the way in which they were resolved. This will give you the chance to gauge the candidates'
self-confidence, creativity and problem-solving skills.

 Ask the candidates to describe a difficult situation involving colleagues and how it was
resolved. This will enable you to test their aptitude for teamwork.

 Ask the candidates about their ambitions and plans to ensure they fit your company profile.

 Beware of asking questions about personal interests. They can get the interview off track or
annoy people who want to keep their work and private lives separate.
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Recruitment is the step towards Selection. Generally recruitments are either taken care by the
HR Department Head or the manager (whoever is responsible for hiring). There is a process
for hiring a candidate that is usually to be followed in large organizations. When there is a
requirement, the HR department is communicated about the same.

The HR department then goes through the database of candidates it has or it would send the
requirements through Classifieds, Job portals, etc. By sending these requirements, the
organization is likely to get feedback from eligible candidates in the form of CVs. The
requirement advertisement should mention the Job Analysis (Job Description and Job
Specification) so as to avoid attracting unnecessary applications.

This also makes it easier for the HR department to shortlist from the applications and this will
help reduce any bias from the HR resulting due to over examining the applications, boredom,
etc.
Recruitment and Selection are two different terms even though they are always mentioned
together. After the recruitment process is accomplished it gives way to the selection process.

Selection process takes place after the HR department has short listed from among the
received applications. The selection is not a lengthy procedure but depends from organization
to organization.

The recruitment process is important in order to avoid any mistakes that would lead to future
problems for the company from the candidate’s end. It’s a saying we have heard in our
childhood, “one dirty fish pollutes the entire pond.” Similar is the case with employees. One
wrong employee in the organization may hamper the growth of the entire organization.

SELECTION PROCESS OF TIMES GROUP

 ,firstly the interview is taken by HR about the details of the candidate

 Next by Senior HR about the retainment that how long he/she works

 Then by Branch Sales Manager about his/her profession

 At last the final round by Assistant Regional Sales Manager for the appointment letter

TRAINING PROCESS
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 The company provides Induction training to the selected candidates

 The training will be given for 6 days

 In this training, the first 3 days are said about job portals and the products

 After training the exam is conducted and passed candidates are provided by an IRDA

PURPOSES AND IMPORTANCE

The general purpose of recruitment is to provide a pool of potentially

Qualified job candidates. Specifically, the purposes are to:

 Determine the present and future requirements of the organization in

Conjunction with its personnel-planning and job-analysis activities.

 Increase the pool of job candidates at minimum cost.

 Help increase the success rate of the selection process by reducing the
Number of visibly, under qualified or overqualified job applicants.

 Help reduce the probability that job applicants, once recruited and
Selected, will leave the organization only after a short period of time.

•Begin identifying and preparing potential job applicants who will be

Appropriate candidates.

•Induct outsiders with a new perspective to lead the company.

•Infuse fresh blood at all levels of the organization.

•Develop an organizational culture that attracts competent people to

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The company.

Search or head hunt/head pouch people whose skills fit the company’s

Values.

•Devise methodologies for assessing psychological traits.

•Search for talent globally and not just within the company.

•Design entry pay that competes on quality but not on quantum.

•Anticipate and find people for positions that do not exist yet.

Increase organizational and individual effectiveness in the short term

and long term.

• Evaluate the effectiveness of various recruiting techniques and

Sources for all types of job applicants.

Recruitment represents the first contact that a company makes withpotential employees. It is
through recruitment that many individuals willcome to know a company, and eventually
decide whether they wish to workfor it. A well-planned and well-managed recruiting effort
will result in high-quality applicants, whereas, a haphazard and piecemeal effort will result
inmediocre ones. High-quality employees cannot be selected when bettercandidates do not
know of job openings, are not interested in working for thecompany and do not apply.

The recruitment process should inform qualifiedindividuals about employment opportunities,

create a positive image of thecompany, provide enough information about the jobs so that
applicants canmake comparisons with their qualifications and interests, and
generateenthusiasm among the best candidates so that they will apply for the vacantpositions.
41 | P a g e

The negative consequences of a poor recruitment process speak volumesabout its role in an
organization. The failure to generate an adequate numberof reasonably qualified applicants
can prove costly in several ways. It cangreatly complicate the selection process and may
result in lowering ofselection standards.

The poor quality of selection means extra cost ontraining and supervision. Furthermore, when
recruitment fails to meet theorganizational needs for talent, a typical response is to raise
entry-level payscales. This can distort traditional wage and salary relationships in
theorganization, resulting in avoidable consequences. Thus, the effectiveness ofa recruitment
process can play a major role in determining the resources thatmust be expended on other HR
activities and their ultimate success.

SUB-SYSTEMS OF RECRUITMENT

The recruitment process consists of the following four sub-functions:-

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Finding out and developing the sources where the required number

and kind of employees will be available.

Developing suitable techniques to attract the desirable candidates

Employing the techniques to attract candidates.

Stimulating as many candidates as possible and asking them to apply

for jobs irrespective of the number of candidates required.

Management has to attract more candidates in order to increase the selection ratio so that the most
suitable candidate can be selected out of the total candidates available. Recruitment is positive as it
aims at increasing the number of applicants and selection is somewhat negative as it selects the
suitable candidates in which process; the unsuitable candidates are automatically eliminated. Though,
the function of recruitment seems to be easy, a number of factors make performance of recruitment a
complex one.

FACTORS AFFECTING RECRUITMENT

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The following are the 2 important factors affecting Recruitment:-

1) INTERNAL FACTORS

•Recruiting policy

•Temporary and part-time employees

•Recruitment of local citizens

•Engagement of the company in HRP

•Company’s size

•Cost of recruitment

•Company’s growth and expansion

2) EXTERNAL FACTORS

•Supply and Demand factors

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•Unemployment Rate

•Labor-market conditions

•Political and legal considerations

•Social factors

•Economic factors

•Technological factors

RECRUITMENT POLICY

Recruitment policy of any organization is derived from the personnelpolicy of the same
organization. In other words the former is a part of thelatter. However, recruitment policy by
itself should take into considerationthe government’s reservation policy, policy regarding
sons of soil, etc.,personnel policies of other organizations regarding merit, internal
sources,social responsibility in absorbing minority sections, women, etc.Recruitment policy
should commit itself to the organization’s personnelpolicy like enriching the organization’s
human resources or servicing thecommunity by absorbing the retrenched or laid-off
employees orcasual/temporary employees or dependents of present/former employees,etc.The
following factors should be taken into consideration in formulating recruitment policy.

They are:-

 Government policies

 Personnel policies of other competing organization

Organization’s personnel policies

 Recruitment sources
45 | P a g e

 Recruitment needs

 Recruitment cost

 Selection criteria and preference

INITIAL STEPS TO HR – RECRUITMENT

We all have heard that, “Employees are assets of a company.” Every company claims to
follow and understand this mantra. The function of HR is all about people- managing them,
hiring them, etc. To carry out any function in a business, be it marketing, production,
operations, you need people. HR brings the people to the organization and its business. It is
said marketing is promoting your product in the market place. Similarly, HR is promoting and
selling your company in the market. If you can promote your company efficiently you are
sure to attract people to work for you.

Every firm whether small or large needs people to do even the minutest clerical work for
them. And when there are employees they need to be managed. A small/medium firm may not
have a devoted HR department. In that case, the owner or the manager plays the role of the
HR head or the firm may hire specialized services of a HR Consultancy.

Whereas, large organizations have their own HR department consisting of a head and staff
that directly reports to the head. The HR department may have further bifurcations depending
on the size of the firm and the number of employees.

When we say we require people for the functions of business, how do we acquire people for
these functions? This is done by RECRUITMENT. For recruitment to happen the company
has to do a Job Analysis of the job to be assigned to an eligible candidate. Job Analysis is
further bifurcated into 2 sub-parts i.e.

SOURCES OF RECRUITMENT

1)INTERNAL 2) EXTERNAL

INTERNAL SOURCES OF RECRUITMENT

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Internal Recruitment is a recruitment which takes place within the concern or organization. Internal
sources of recruitment are readily available to an organization. Internal sources are primarily three
Transfers, promotions and Re-employment of ex-employees. Re-employment of ex-employees is one
of the internal sources of recruitment in which employees can be invited and appointed to fill
vacancies in the concern. There are situations when ex-employees provide unsolicited applications
also.

1 .TRANSFERS

The employees are transferred from one department to another according to their efficiency and
experience.

2. PROMOTIONS

The employees are promoted from one department to another with more benefits and greater
responsibility based on efficiency and experience.

3 .UPGRADING & DEMOTIONS

Upgrading and Demotion of present employees according to their performance.

4.RETIRED & RETRENCHED EMPLOYEES

Retired and Retrenched employees may also be recruited once again in case of shortage of qualified
personnel or increase in load of work. Recruitment of such people saves time and costs of the
organizations as the people are already aware of the organizational culture and the policies and
procedures.
47 | P a g e

5. DEPENDENTS AND RELATIVES OF DECEASED EMPLOYEES

The dependents and relatives of Deceased employees and Disabled employees are also done by many
companies so that the members of the family do not become dependent on the mercy of others.

EXTERNAL SOURCES OF RECRUITMENT

External recruitment seeks applicants for positions from sources outside the company. The various
external sources include:

1.PLACEMENT AGENCIES

Several private consultancy firms perform recruitment functions on behalf of client companies by
charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It
is also known as RPO (Recruitment Process Outsourcing)

2.EMPLOYEE REFERRAL/RECOMMENDATION

Many organizations have structured system where the current employees of the organization can refer
their friends and relatives for some position in their organization.

Also, the office bearers of trade unions are often aware of the suitability of candidates. Recruitment
Management can inquire these leaders for suitable jobs.

In some organizations these are formal agreements to give priority in recruitment to the candidates
recommended by the trade union.
48 | P a g e

3.WALK-IN, WRITE-INS & TALK-INS

Many job seekers visit the office of well-known companies on their own. Such callers are considered
nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the
database of the probable candidates for the organization.

4. EDUCATIONAL INSTITUTES

Various management institutes, engineering colleges etc. are a good source of recruiting well qualified
executives, engineers etc. They provide facilities for campus interviews and placements. This source
is known as Campus Recruitment.

5. JOB PORTALS

With the advent of the Internet, searching for candidates has acquired a whole new dimension. Web
portals dedicated to finding jobs have been setup. The candidates key in their details and post their
resumes. Employers have to just browse through these resumes or use the site search engine to list out
people with specific skills. mostly uses

Times job.com for recruiting candidates.

Limitations of the study

 The project is limited only to Telecom sector., will cover the theoretical aspects of
Recruitment and selection.,may be hesitant in revealing the information.,There would be
biased responses from the respondents.
49 | P a g e

Chapter III
Research methodology
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RESEARCH is a ‘careful investigation or inquiry especially through search for new facts in
any branch of knowledge’.

METHODOLOGY OF STUDY:
In our journey to SEI-CMM Level 3, we have acquired extensive experience, maturity and
robust processes in different software development methodologies such as Rapid application
development, Object oriented development, Structured analysis and design and development,
along with standard methodologies like conventional waterfall, iterative, spiral and other
popular models..

DATA COLLECTION:
Primary Data:
Primary data was collected through survey method by distributing questionnaires to
employees. The questionnaires were carefully designed by taking into account the parameters
of my study.
Secondary Data:
Data was collected from web sites, going through the records of the organization, etc. It is the
data which has been collected by individual or someone else for the purpose of other than those
of our particular research study. Or in other words we can say that secondary data is the data used
previously for the analysis and the results are undertaken for the next process.
51 | P a g e

KIND OF RESEARCH
The research done by

EXPLORATORY RESEARCH
This kind of research has the primary objective of development of insights into the problem.
It studies the main area where the problem lies and also tries to evaluate some appropriate
courses of action.

Sample Design:
A complete interaction and enumeration of all the employees was not possible so a sample
was chosen that consisted of 25 employees. The research was taken by necessary steps to
avoid any biased while collecting the data.

Tools of Analysis:
The data collected from both the sources is analyzed and interpreted in the systematic manner
with the help of statistical tool like percentages.

RESEARCH DESIGN:
A research design is the arrangement of the condition for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with economy in
procedure.

A research design is the specification of methods and procedure for acquiring the information
needed to structure or to solve problems. It is the overall operation pattern or framework of
the project that stipulates what information is to be collected from which source and be what
procedures.

• What is study about?

• What is study being made?

• Where will the study be carried out?

• What type of data is required?

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• Where can the required data be found?

• What will be the sample design?

• Technique of data collection.

• How will data be analyzed?

Sampling method:

Probability random sampling method was used for the research

Target respondents and tools used:

The target respondants are HR department of the firm and to analyse

their effectiveness of selection methods ,questionnaire, Data sampling
and statistical tools are used

LIMITATIONS OF THE STUDY

• During the course of the study it was hindered by few limitations due to
which the data collection and the study of the analysis were not so
accurate.
•
• The duration of the project was only 45 days because of which detailed
analysis could not be facilitated.
•
53 | P a g e

• Direct interaction with all the members of the HR department was not
possible due to which the information collected was only though
questionnaires.
•
• Few questions were unanswered in the questioner, which affected the
accuracy of data collection.
•
• Reluctance of the respondents in giving information is the other limitation
the other project.

Chapter IV
Data analysis and Interpretation
54 | P a g e

1. What is the biggest benefit of job ?

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 Security 40 80

2 commission 5 10

3 Protection of 5 10
wealth

4 All 0 0

total 50 100
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Analysis:

For 80% of employees reason for doing job is job security and for rest of 20% its profile and wealth

Interpretation:

The above graph shows that the biggest benefit of life job portal is security
And the next two shows benefit

2) Is there any performance incentives?

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 Yes 47 94

2 No 3 6

total 50 100
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Analysis:
As per 94 % of respondents incentives are there

Interpretation:

The above graph shows the performance incentives are given in the company.
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3) How do you recruit employees in Times group?

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 References 3 6

2 Advertisements 5 10

3 Consultancy 35 70

4 Walk-ins 7 14

total 50 100

ANALYSIS:

70% of times group employees are recruited through consultancies

INTERPRETATION:
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The hiring process in this company is done by consultancy of 35 respondents and next is through
walk-ins.

4) How frequently you recruit employees?

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 6 months 5 10

2 1 year 0 0

3 3 months 5 10

4 Every month 40 80

total 50 100
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Every month; 40

6 months; 5 3 months; 5

1 year; 0

ANALYSIS: as per 80%,every months and 6 months are 10%.

INTERPRETATION:

In this company the employees are recruited frequently

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5) What is the range on scale of getting maximum & good quality profiles?

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 Average 35 70

2 Good 10 20

3 Very good 5 10

4 excellent 0 0

total 50 100

ANALYSIS:

As per 70% of respondents profiles they get are average according 10% they are very good and 20%
good

INTERPRETATION:
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The above graph shows that the range of getting good quality profiles are average and very good is
very low.

6) criteria considered while screening the profile is

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 Age 5 10

2 Qualification 7 14

3 Work 38 76
experience

4 References if 0 0
any

total 50 100
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Work experience; 38

Qualification; 7
Age; 5

References if any; 0

ANALYSIS:
About 76% of employees are unto experienced profiles are considered more where 14% think its
qualification which matters 10%opinioned it as age factor also plays role

INTERPRETATION:

The above graph shows while screening the profile work experience is given more importance
and next by qualification

7) % of candidates who clear the aptitude test is

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SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 100 0 0

2 70 10 20

3 80 35 70

4 50 5 10

total 50 100

1; 100

3; 80
2; 70

4; 50

3; 35

2; 10
4; 5

1; 0

ANALYSIS:

70% of responded that 80% clear aptitude test where as 20% says that 70 percent can clear appitude
test rest of 10% are opinioned that its gonna be 50%

INTERPRETATION:
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The above graph shows majority of the candidates clear the aptitude test

8) how ofen provides training skill development to new recruits

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 yes 42 84

2 no 8 16

total 50 100
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ANALYSIS:

84% agreed that adequate training is provided to new employees rest 14 person didn’t agreed to this
poiny

INTERPRETATION:

The above graph shows the training is mostly provided for new employees unless the organization
see’s a potential capability of new employee or he is an experienced person well versed with field
joined newto organisation
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9) steps include in selection process are

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 5 7 14

2 6 0 0

3 8 0 0

4 4 43 86

total 50 100

4; 43

1; 7 3; 8
1; 5 2; 6
4; 4

2; 0 3; 0

ANALYSIS:

86% stated that selection process is 4 step process where is 14% stated that its 5 step process
 67 | P a g e

INTERPRETATION:

The above graph shows the selection process include mostly 4 and some times 5.in it

10) After selection of candidates what is the time for offer release?

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 Same day 0 0

2 3-5 days 37 74

3 1-2 days 10 20

4 7 days 3 6

total 50 100
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3-5 days; 37

1-2 days; 10

7 days; 3

Same day; 0

ANALYSIS:

For 74% of employees the offer letter will be in hand by 3-5 days for for 20% its around 2 days and
for 6% its week

INTERPRETATION:

The above graph shows after selection the offer letter is given to the selected candidate in 3-5 days
and if the candidate is good then 1-2 days

11) The employment rate in a year

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SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 70 5 10

2 80 35 70

3 90 10 20

4 100 0 0

total 50 100

4; 100
3; 90
2; 80
1; 70

2; 35

3; 10
1; 5

4; 0

INTERPRETATION:

As the marketing firm and attrition rate is high so as the employment percentage

Analysis:

Employment rate in year 80 according to 70% of respondents and upto 90% for rest 30%
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12) experience considered for HR position inTimes group

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 3 years 5 10

2 4 years 15 30

3 2 years 0 0

4 5 years 30 60

total 50 100

ANALYSIS:
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60% of resonpondent says that 5years of experience is considered for HR profile rest of 40% are
opinioned its will be 2-4 years

INTERPRETATION:

The experience required for HR position in is 5 years and above

13) attrition rate (No. of employees leaving the company in a year)

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 50 40 80

2 60 10 20

3 80 0 0

4 30 0 0

total 50 100
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3; 80

2; 60

1; 50

1; 40

4; 30

2; 10

3; 0 4; 0

ANALYSIS:

80% of respondents responded that attrition rate in organization is 50 per year 20% opinioned that it
can be up to 60%

INTERPRETATION:

Majority of the employees are accepting to the fact that attrition rate is high
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14) departments generate the most successful employees

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 Agency 20 40

2 D.S.F 10 20

3 Operations 20 40

4 Cab 0 0

total 50 100

3; 80

2; 60

1; 50

1; 40

4; 30

2; 10

3; 0 4; 0

ANALYSIS:
40% opinions that agencies produce effective employees 20% opinions that DSF do the thing rest of
40% are into opinion that operation has effective employees

INTERPRETATION:

The departments that generate the successful employees is in agency and operations departments

15) kind of skill sets are considered for choosing executive are
 74 | P a g e

SL.NO RESPONSE NO OF RESPONDENTS PECENTAGE %

1 Knowledge 15 30

2 Education 10 20

3 Natural market 20 40

4 Hard working 5 10

total 50 100

Natural market; 20

Knowledge; 15

Education; 10

Hard working; 5

ANALYSIS:
40% of respondents stated that natural market is required to becoming agent where as 30%stated that
knowledge is factor and 20% are in opinion that education is key 10% stated that its hardwork

INTERPRETATION:

The above graph shows the natural market is important to become an agent that shows and next
knowledge is considered.
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Chapter V
Conclusions
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 SUGGESTIONS:-

 In the 4 years of existence in the market it has created a sensation by introducing its most
profitable Unit-Linked Plans and products.

 needs to concentrate to make its products and company much more aware among the public
to change the mindset of the people and attract them towards database solutions sector.

 It needs to conduct awareness programmers, campaigns and publish news about the company,
products and attributes to position it in the customer’s mind. The company should timely
communicate through media to make the relationship stronger.

 Another way of creating awareness about the presence by placing hoardings and posters in the
traffic areas and market complexes to attract the attention of the people.

 The awareness through the Television is another medium. Though it advertises its product but
it should forecast itself on the channel which the maximum of people use or advertising
through regional channels.

 More than the urban as well as rural areas. It can create much more awareness. The above
discussed methods could be helpful to create awareness and thus can attract more people
 The strict training schedule should be made flexible. For a person who is
 On score it is difficult for him/ her to be able to come for training especially in case when he/
she is already working

CONCLUSION
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As we know that 35.5% of the companies are using recruitment portal that means rest 64.5% of the
people are still using traditional methods. It means job portal industry is still in growth stage. But
when we go to recruit advisors of most of the people did not agree because their view was that nobody
is ready to invest.

The reason is that 70% of the people of India are living in rural areas and the awareness of private job
portal company in rural market is very poor. But, it was found that the questionnaire and interview
questions, employee manual were sufficient to obtain the information required to analyze the process
of requirement within the organization.

It has been found that the organization has a sound understanding of what process need to be used in
order to achieve effective recruitment of advisors

In addition to this, there are several recommendations for the organization. For any firm to be
successful the main objectives should be:

 Sustainable long-term growth,

 Stable income and

 Asset preservation;

 Need to emphasize quality and diversification in both equity and fixed income asset

 Focus should be on long-term consistent investment performance.

 Emphasis towards training and enhancing skills of recruiters needs to be more.

 Invest more in current staff than in Recruitment:

 Conduct internal audit.

 Be Creative

 Understand and manage salary:.

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 The general perception of life job portal has to change in India before progress
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Chapter VI
Appendix

QUESTIONNAIRE

1) What is the biggest benefit of life job portal?

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A) Security B) commission C) protection of wealth D) all

2)How many products are offered?

A) 4 B) 3 C) 5 D) 2

3) Is there any performance incentives?

A) Yes B) No

4) In all how many employees are working?

3200

5) Is there any targets to make no. of policies?

A) Yes B) No

6) How frequently you recruit employees?

A) 6 months B) 1 Year C)3 months D) Every month

7) How do you recruit them?

A) References B) Advertisements C) Consultancy D) Walk-ins

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8) What is the range on scale of getting maximum & good quality profiles?

A) Average B) Good C) Very Good D) Excellent

9) Under what criteria do you consider while screening profile?

A) Age B) Qualification C) Work Experience D) References if any

10) What is the % of candidates who clear the aptitude test?

A) 10% B) 20% C) 30% D) 50%

11) Do you normally provide training skill development to new recruits?

A) Yes B) No

12) If yes do you send your employees for external training?

A) Training institutes B) work shops C) seminars D) none

13) How many steps include selection steps?

A) 5 B) 6 C) 8 D) 4
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14) On what skill sets candidates are selected inTimes group?

A) Qualifications B) Capabilities C) Soft skills D) All the above

15) After selection of candidates what is the time for offer release?

A) Same day B) 3-5 days C) 1-2 days D) 7 days

BIBLIOGRAPHY

Kotler

, P.(2006), ³Marketing Management´, 12th

Edition New Delhi: Pearson PublishersLtd.,pg-148-167

Cooper D.R

.
83 | P a g e

, ³Business Research Methods´, Tata McGraw Hill, New Delhi, 2006,pg-143-147

Kothari

, C.R(2004), ³Research Methodology´, 2nd

Edition: New Age international Publishers,pg-95,152.Arrow K. (1963), "Uncertainty and the Welfare
Economics of Medical Care", American Economic Review, 53(5):941-973Dionne (1984), "Search and
Job portal", International Economic Review, Vol 25(2), 357-367

WEBSITES
w.wikipedia.org

www.ibef.org (Indian brand equity forum)

www.selling-well.com